Reversionary Charitable Lead Annuity Trust

Design, Drafting and Consulting Services

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Who We Serve

We serve three types of clients:

 

  1. Individuals seeking IMMEDIATE tax savings from their future annual gifts to charity;

  2. Financial advisors, accountants, & attorneys; and

  3. Charities, churches, ministries & donor advised fund (DAF) sponsors. 

We are engaged to design, draft, establish and fund iCLATs, that's our sole purpose!  iCLATs are technically known  as "reversionary" charitable lead annuity trusts.  We provide our services in all 50 states.  Our services are provided collaboratively with our clients' professional advisors (attorneys, accountants and financial planners).  

What We Do

Our website is loaded with FREE tools, resources & information to help you better understand the iCLAT. 

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THE IMMEDIATE INCOME TAX SAVINGS
GENERATED BY iCLATs ARE AT 
ALL-TIME HIGH LEVELS RIGHT NOW!
WHY?
The IRS §7520 interest rate remains all-time low levels right now.  The April 2021 rate is only 1.0%, which is available for iCLATs created through the end of June 2021!

iCLAT Term

(# of Years)

% Year 1 Charitable Deduction

(*Based on the SUM of the iCLAT's Annual Payments to Charity) 

20-Year iCLAT 

90.2%

Example: A 20-year iCLAT with annual payments to charity of $25,000/year (TOTAL of $500,000 to charity) will generate a $451,138 IMMEDIATE Year 1 charitable deduction for the client/donor!

15-Year iCLAT 

92.4%

Example: A 15-year iCLAT with annual payments to charity of $25,000/year (TOTAL of $375,000 to charity) will generate a $346,626 IMMEDIATE Year 1 charitable deduction for the client/donor!

10-Year iCLAT 

94.7%

Example: A 10-year iCLAT with annual payments to charity of $25,000/year (TOTAL of $250,000 to charity) will generate a $236,782 IMMEDIATE Year 1 charitable deduction for the client/donor!

5-Year iCLAT 

97.1%

Example: A 5-Year iCLAT with annual payments to charity of $25,000/year (TOTAL of $125,000 to charity) will generate a $121,335 IMMEDIATE Year 1 charitable deduction for the client/donor!

3-Year iCLAT 

98.0%

Example: A 3-Year iCLAT with annual payments to charity of $25,000/year (TOTAL of $75,000 to charity) will generate a $73,524 IMMEDIATE Year 1 charitable deduction for the client/donor!

 

An "iCLAT" is simply a trust that makes annual distributions to charity for a specified term of years and then, at the end of the term, distributes the remaining trust assets back to its grantor (i.e. the donor or the client).  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?

An iCLAT will work best for someone who regularly gives at least $10,000 per year to one or more charities (including their place of worship)

AND EITHER:

(1) has a sudden current year increase in "ordinary 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, which is released each month.  Since the IRS §7520 interest rate continues to remain at all-time historic lows (1.0% for April 2021), the resulting year 1 charitable tax deductions from iCLATs have never been greater than they are right now!  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.

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, which is released each month.  Since the IRS §7520 interest rate continues to remain at all-time historic lows (1.0% for April 2021), the resulting year 1 charitable tax deductions from iCLATs have never been greater than they are right now!  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?

WHY is 2021 is one of the best years to create an iCLAT?

 

INSTANTLY CALCULATE THE LARGE

IMMEDIATE CHARITABLE DEDUCTION

THAT AN iCLAT

WILL GENERATE IN THE CURRENT YEAR!

 
 
 
 FREE CUSTOMIZED iCLAT ILLUSTRATION

It only takes a few minutes to answer the few questions necessary in order for our team to create a FREE iCLAT Illustration specifically customized to your particular situation.  If you prefer, your information may be provided on a completely anonymous basis.  You will receive your customized iCLAT Illustration within 2 business days after we receive your answers. 

SCHEDULE A PERSONAL CALL OR ZOOM MEETING 

Schedule a FREE NO OBLIGATION 30 MINUTE PERSONAL CALL OR ZOOM MEETING with our Founder & President - Brad Gornto.  You are welcome to invite any of your professional advisors to join your Call or Zoom Meeting as well!

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.

SIGN UP FOR ONE OF OUR
FREE WEBINARS

Our Founder & President - Brad Gornto provides FREE webinars throughout the year for individual givers, charitable giving/development professionals and also for allied professional advisors (accountants, attorneys and wealth advisory teams). 

GOT A QUESTION?  SEND IT TO US.

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.

 
Where Will an iCLAT Generate 
Additional Tax Savings at the State Income Tax Level?
State Map.png

BEST Top Tier State Income Tax AND 100% Charitable Deduction

                 *The highest income tax rate in these States range from 7% to 13%.

GOOD  - 2nd Tier State Income Tax AND 100% Charitable Deduction

                 *The highest income tax rate in these States range from 2% to 6.9%.

NEUTRAL - States with NO Income Tax Rates OR NO State Charitable Deduction

                     * iCLATs will only save Federal Income Taxes in these States 

          

Click Here to Download a PDF of the
State Income Tax Savings Map for iCLATs 
 

iCLAT® is a registered trademark of Effectual Giving, LLC and used here by iCLAT Solutions, LLC an authorized licensee.  

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