Many clients need current-year income tax relief after a major tax event — sale of real property or a business, a large bonus, IRA/401(k) or Inherited IRA distributions, a Roth conversion, or increased K-1 income.
This webinar, led by tax lawyer Brad Gornto, covers the "reversionary" charitable lead annuity trust (iCLAT®), a strategy that delivers substantial immediate tax savings for charitably-minded clients who already support a church, donor advised fund, or private foundation.
iCLATs offer two compelling benefits:
First, no big check or asset transfer to charity is required to get a large current-year deduction. The client simply funds a trust — retaining fiduciary control as trustee — and makes the specified annual distributions to their preferred charities during the trust's term. Under IRC §170(f)(2)(B) and Treas. Reg. §1.170A-6(c), the client receives a deduction equal to the present value of those future distributions, in the current tax year. Second, at the end of the term, the trust's remaining assets revert back to the client tax-free.
Learning Objectives:
- Understand this powerful, underutilized tax mitigation strategy for charitably-minded clients
- Recognize the ideal client scenarios for an iCLAT
- Review two actual iCLAT case studies
- Compare iCLATs vs. donor advised funds — a "tale of the tape"
