It isn’t every dayindeed every yearthat the IRS and the Treasury make pronouncements on charitable lead trusts. Thus, a recent regulation on the “ordering” rules for lead trust payments and a private letter ruling on “ascending annuity payments” are worth noting. To avoid an arcane mutiny, here’s a quick primer on lead trusts.
Charitable lead annuity trust in brief. A CLAT pays the charity (or charities) a fixed dollar amount (annually or in more frequent installments) set at the outset for the term of the trust. Then the principal goes to the noncharitable remainderpersons (or in rare cases, reverts to the donor).
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
