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Collaboration With 
Allied Professional Advisors

Financial Planners

The iCLAT Is A Powerful Value-Add Tool to Consider

Financial planners usually communicate with their clients more often than any other professional advisor, such as an accountant or estate planning attorney.  For this reason, financial planners are usually the first advisor to become aware of a client's potential transaction which might lead to a large taxable event.  Additionally, most charitable-minded clients have significant IRAs, 401ks, and other forms of qualified retirement assets, which their financial advisor has helped grow over the years.   The significant income tax savings benefits of the iCLAT can be used to greatly mitigate the large income taxes that will be triggered after such events occur.  A strong understanding of the iCLAT's *****  is a compelling way for a financial advisor to increase the value of the services that he or she provides to clients.  


"Coupling" a DAF with the iCLAT Results in Maximum Planning Flexibility

Sponsoring organizations of donor advised funds (DAF's) have known for years that charitable lead trusts (CLTs) are compelling tools that individuals can utilize to fund donor advised accounts on a significant annual basis.  This is particularly the case in the current historically low interest rate environment. However, because traditional CLTs are more complex to establish and administer due to their focus on estate tax savings (which impacts few donors), it is very rare for a CLT to actually be established for such purpose.   

The good news for DAF sponsors is that the iCLAT is designed solely for income tax savings purposes and, therefore, not only is it applicable to exponentially more donors, but it is also easier and less expensive to establish and administer.  In other words, the iCLAT has fewer barriers to implementation than traditional CLTs.   This means that the iCLAT is a much more effective way for a DAF sponsor to make a CLT recommendation to its donors who may have a high level of income in particular year.  Contact us to learn more.

  • n this iCLAT strategy, the client simply uses his or her own donor advised fund as the beneficiary of the iCLAT. ​

  • This plan gives the client’s family the ability to retain the grant-making advisory control/timing/privacy over the charitable payments, in addition to receiving the CLT principal assets back at the end of the CLT term.

Estate Planning Attorneys

The iCLAT's Annual Distributions Closely Resembles the Tithes and Offerings Made to Churches & Faith-Based Ministries on Recurring Basis

As the Christian faith so clearly proclaims, all the wealth that we have in our bank accounts and on our balance sheets is God’s – not ours.  All Christians are called to be stewards of what He has blessed us with, in varying degrees, amounts and times during our lifetime.  Throughout the Bible, Christians are directed to give offerings back to the Lord to further His purposes and for the spread of the Gospel.  In many ways, this type of giving on a recurring basis is simply an extension (or fruit) of our faith. This can be done through tithes and offerings to a church, to ministries or simply to those who are in great need.  In different ways, Christians are told by Christ and the apostles (in the New Testament) and by the prophets (in the Old Testament) to give on a recurring basis – not just once during our life or at the time of our death. 


For this very reason, the annual (or more frequent) charitable payment structure inherent in the iCLAT (and all charitable lead trusts, for that matter) represents the very picture of the recurring giving pattern which we – as Christians, are called to follow.   The only difference is that by making those same gifts from an iCLAT, a Christian can receive a large accelerated charitable deduction in the current year that is typically equal to 85% to 90% of total charitable distributions to be paid over the 5, 7, 10, 15, 20+ years of the iCLAT.  Just like any other taxpayer, a Christian can benefit from this accelerated charitable deduction when he or she has a high level of adjusted gross income (AGI) in a particular year.

For this reason, all churches and faith-based charities (as well as synagogues and Jewish charitable organizations) should be aware of the iCLAT.