IRS §7520 Rate

0.6% - June 2020

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Reversionary CLT Design, Drafting & Funding Services

THE IRS §7520 RATE IS NOW AT AN
ALL-TIME HISTORIC LOW OF 0.6%!

94.0%

Example: An iCLAT with annual payments to charity of $25,000/year (TOTAL of $500,000 to charity) will generate a $469,840 Year 1 charitable deduction for the client/donor!

20 Year iCLAT 

95.4%

Example: An iCLAT with annual payments to charity of $25,000/year (TOTAL of $375,000 to charity) will generate a $357,596 Year 1 charitable deduction for the client/donor!

15 Year iCLAT 

96.9%

Example: An iCLAT with annual payments to charity of $25,000/year (TOTAL of $250,000 to charity) will generate a $241,944 Year 1 charitable deduction for the client/donor!

10 Year iCLAT 

98.2%

Example: An iCLAT with annual payments to charity of $25,000/year (TOTAL of $125,000 to charity) will generate a $122,781 Year 1 charitable deduction for the client/donor!

5 Year iCLAT 

98.8%

Example: An iCLAT with annual payments to charity of $25,000/year (TOTAL of $75,000 to charity) will generate a $74,109 Year 1 charitable deduction for the client/donor!

3 Year iCLAT 

iCLAT Term

(# of Years)

% Year 1 Charitable Deduction

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

 

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?

WHY is 2020 the best year to create an iCLAT?

An iCLAT will work best for someone 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 the it's annual payments to charity - using the IRS §7520 interest rate, which is released each month.  Since the IRS §7520 interest rate is currently at its new historic low of 0.6% (June 2020), the resulting charitable tax deductions from iCLATs have never been higher 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.

4 REASONS WHY:

  1. The IRS §7520 rate is an all-time low of 0.6% (June 2020).  This is discussed in more detail above and also on our FAQ's page.

  2. As a result of the recent doubling of the standard deduction (effective 1/1/2018), it is harder than ever to receive any additional tax savings for annual charitable gifts under $24,800/year (married persons), $12,400/year (single person) and $18,650 (heads of household).

  3. The reasonable probability of more legislative restrictions to the charitable deduction in the near future.

  4. The continued suspension of the overall limitation on itemized deductions for high-income individuals (the so-called "Pease Limitation") until December 31, 2025.

WHO can most benefit from 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 ZOOM MEETING 

Schedule a FREE NO OBLIGATION 30 MINUTE PERSONAL ZOOM MEETING with our Founder & President - Brad Gornto.  You are welcome to invite any of your professional advisors to join your 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.

SCHEDULE A TELEPHONE CALL

Schedule a FREE NO OBLIGATION 30 MINUTE TELEPHONE CONFERENCE with our Founder & President - Brad Gornto.  You are welcome to invite any of your professional advisors to join on the call as well!

SIGN UP FOR ONE OF OUR
FREE WEBINARS

Our Founder & President - Brad Gornto provides multiple FREE webinars each month for individuals, annual donors, charitable giving/development professionals and also for allied professional advisors (accountants, attorneys and financial planners). 

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 for a PDF of the
Full iCLAT State Income Tax Savings Map 
 

CONTACT US

844-46-iCLAT

Office Mailing Address

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