Low Interest Rates Make Charitable Lead Trusts More Valuable

Gallo, Jon J.
April 2009
Journal of Financial Planning;Apr2009, Vol. 22 Issue 4, p34
Academic Journal
The article discusses charitable lead trusts (CLTs), or charitable income trusts, which are said to be particularly useful in times of low interest rates. CLTs can be used to both give to charity and pass assets to children at a reduced tax rate. A CLT is created by a donor placing income-producing property into an irrevocable trust. Various types of CLTs are described, including testamentary, annuity, and grantor trusts. It is noted that CLTs are less than ideal for transferring assets to grandchildren.


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