Estate Planning Red Flag – Your plan includes a charitable lead trust
Abstract: A charitable lead trust (CLT) makes annual payouts to a qualified charity for a specified period or for the grantor’s life. The remainder interest then passes to the grantor’s heirs or other noncharitable beneficiaries. Last year, the IRS finalized regulations that affect the way CLTs are taxed. As a result, they may be less attractive than before. This article explains the details.