We previously advised to ‘Get Charitable Remainder Trusts While They Are Hot This Summer’ (1); however, we also see a trend of decreasing inflation and lower federal funds rates, which makes Charitable Lead Trusts (CLTs) more attractive again (Fig. The Effect of the IRS 7520 Rates on the Immediate Income Tax DeductionHigher 7520 rates favor Charitable Remainder Trusts, while lower rates favor Charitable Lead Trusts. These payments can be structured as a fixed annuity (Charitable Lead Annuity Trust, CLAT) or a percentage of the trust’s assets (Charitable Lead Unitrust, CLUT). ConclusionAs we observe a trend of decreasing IRS 7520 rates, the attractiveness of Charitable Lead Trusts (CLTs) is increasing once again. Charitable Remainder Trusts: Get Them While They Are Hot This Summer.

Source: Wall Street Journal July 20, 2024 09:51 UTC