Who We Serve
We work with
3 types of clients:
Those in need of IMMEDIATE tax savings from their future annual gifts to charity
Financial advisors, accountants & attorneys;
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
GENERATE IMMEDIATE INCOME TAX SAVINGS
from Future Annual Charitable Gifts
An "iCLAT" is 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 the person who created the iCLAT. For IRS purposes, iCLATs are known as "reversionary" charitable lead annuity trust, which are treated as "grantor trusts" for income tax purposes. Importantly, iCLATs have nothing to do with saving estate taxes, or estate planning for that matter. For those reasons, iCLATs are simpler to explain, administer, and establish than traditional charitable lead trusts which are primarily established for estate planning reasons. Many accountants and advisors whom we work with generally think of an iCLAT as an "Income Tax Savings CLAT"
HOW does an iCLAT generate
IMMEDIATE TAX SAVINGS?
The very large IMMEDIATE YEAR 1 charitable tax deduction generated by an iCLAT is equal to the "present value" of it's annual payments to charity - using the IRS §7520 interest rate, which is released each month. Since the IRS §7520 interest rate remains at low levels (4.2% for June 2023), the resulting IMMEDIATE charitable tax deductions from iCLATs are extremely large! Use the iCLAT Calculator Tool to instantly determine the IMMEDIATE charitable tax deduction and tax savings that a particular iCLAT can generate for you, your clients, or your donors.
WHO can most benefit from an iCLAT?
An iCLAT will work best for someone who regularly gives at least $10,000 per year to one or more charities (including to their place of worship and/or donor advised fund)
(1) has a spike income event of $250,000 or more;
(2) currently has a high level of income that is expected to end within the next two years due to retirement, or other reasons.
WHY is 2023 is one of the best years to create an iCLAT?
3 KEY REASONS
The IRS 7520 interest rate remains at relatively low levels (the rate is only 4.2% for June 2023), but this won't last forever. The low IRS discount rate is what allows iCLATs to generate such large IMMEDIATE charitable income tax deductions and resulting tax savings!
As a result of the recent DOUBLING OF THE STANDARD DEDUCTION, it is now harder than ever to receive any income tax savings from charitable gifts under $13,850/yr. for single persons and $27,700/yr. married persons.
The prior overall limitation on itemized deductions for high-income individuals, the so-called "Pease Limitation," is currently suspended (until December 31, 2025). As a result, an iCLAT's large immediate charitable deduction will produce significantly more income tax savings now in comparison to prior years.
FREE CUSTOMIZED iCLAT ILLUSTRATION
It only takes a few minutes to answer the few questions necessary for our team to create a FREE iCLAT Illustration specifically customized to your (or your client's) particular situation. You will receive your customized iCLAT Illustration within 2 business days after we receive your answers.
Where do iCLATs Generate
Additional Tax Savings at the State Income Tax Level?
BEST - Top Tier State Income Tax AND 100% Charitable Deduction
*The highest income tax rate in these States range from 7% to 13%.
GREAT - 2nd Tier State Income Tax AND 100% Charitable Deduction
*The highest income tax rate in these States range from 2% to 6.9%.
GOOD - 3rd Tier States with NO Income Tax or NO State Charitable Deduction
* In these States iCLATs only save Federal Income Taxes