iCLAT Essentials:
The "What" "How" "When" & "Why" of iCLATs
An "iCLAT" is simply a trust which makes annual distributions to one or more charities for a specified term of years and thereafter distributes the remaining trust assets back to the grantor (i.e. the client/donor who created the iCLAT). For legal and IRS purposes, an iCLAT is known as a "reversionary" charitable lead annuity trust, which is treated as a "grantor trust" for federal income tax purposes. Importantly, an iCLAT has nothing to do with saving estate taxes, or estate planning for that matter. Think of an iCLAT as an "Income Tax Savings CLAT"
HOW does an iCLAT generate so much IMMEDIATE TAX SAVINGS?
iCLATs work best for a person who regularly gives at least $10,000 per year to one or more charities (including their place of worship)
AND EITHER:
(1) has a current-year increase in income of $250,000 or more;
OR
(2) has a high current level of income that is expected to end within the next two years from retirement, the end of a lucrative contract, or other reasons.
The IMMEDIATE YEAR 1 charitable tax deduction generated by an iCLAT is equal to the "present value" of its annual payments to charity - using the IRS §7520 interest rate (4.4% for November 2024), which is released each month. Use the iCLAT Calculator Tool to instantly determine the IMMEDIATE income tax deduction that a particular iCLAT can generate for you, your donor, or your client.
WHO can most benefit from an iCLAT?
GOT A QUESTION?
If you have a question, please send it to us. We'll get back to you promptly with an answer, usually within 24 hours. Also, be sure to look at our Frequently Asked Questions (FAQs) page. Your question may have already been asked by others - and answered.
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FREE WEBINARS
Our Founder & President - Brad Gornto provides multiple FREE webinars throughout the year for annual givers, charitable giving professionals and also for allied advisors (accountants, attorneys and financial planners).
iCLAT ANALYZER TOOL
Perhaps you want to determine if an iCLAT is an appropriate charitable planning tool for you to consider. If so, the iCLAT Analyzer Tool will help you find out! The iCLAT Analyzer Tool has 8 simple questions, which will allow us to quickly determine if the iCLAT is right for you, your clients or your charity's donors.
FREE CUSTOMIZED iCLAT ILLUSTRATION
In less than 3 minutes you can provide all the information necessary for our team to create a FREE iCLAT Illustration specifically customized to your particular situation. Your information may be submitted to us on an anonymous basis. You will receive your customized iCLAT Illustration within 2 business days.