Support a Charity – and Your Loved Ones – With a CLAT
A charitable lead annuity trust (CLAT) is an estate planning tool whereby a person (grantor) creates a trust that initially benefits a charitable organization, foundation, or other qualifying entity for a defined period. After this time ends, the CLAT’s remaining assets are distributed to non-charitable beneficiaries, usually a grantor’s loved ones or family members. Depending on how it is structured, a CLAT may be able to reduce a person’s estate and gift taxes. Characteristics of CLATs CLATs are irrevocable trusts and can be created and funded during a grantor’s lifetime or through that grantor’s will. The grantor can fund the