Estate Planning With Charitable Lead Trusts: CLATs, CLUTs, Income Taxes, GST Issues, Deductions, and More

CLTs can provide significant income and estate tax advantages while also satisfying charitable intent. To ensure these advantages for clients, trusts and estate counsel must have a complete understanding of the legal framework and tax rules applicable to CLTs.

A CLT is a planning tool that can be a tax-efficient way to provide for charitable giving while also maintaining family wealth upon transfer. CLTs is a charitable split-interest trust whereas income interest is paid to a charitable organization, and the remainder interest is transferred to the donor or the donor's family.

The use of CLTs is determined based on client needs and circumstances. In addition, structuring CLTs for income tax deduction and gift-tax efficient transfers requires in-depth knowledge of complex tax rules.

Listen as William R. Hayes, Partner at Hayes & Wilson, discusses the mechanics of CLTs under current tax law and challenges for counsel, key methods for incorporating a charitable split-interest trust in an estate plan, the advantages and challenges of CLATs and CLUTs, and determining when to use a grantor or nongrantor CLT. The panel will also discuss methods to maximize charitable deductions for donors, GST tax issues, and other key items.

1. Applicable rules and legal framework
2. Key elements of CLTs
3. Types of CLTs
4. Income and estate tax planning

The panelist will review these and other key issues:

• What are the legal framework and applicable rules for CLTs?
• What are the key elements of CLTs?
• What are the differences and challenges of CLATs and CLUTs, and what factors must be considered in determining which will provide the most benefit to clients?
• How can you properly structure a CLT for an income tax deduction and timing of trust income?
• How can you ensure gift tax-efficient transfers to beneficiaries?

Learning Objectives

After completing this course, you will be able to:

• Understand the applicable tax rules for CLTs
• Identify key elements of CLTs for income and gift tax planning
• Recognize the tax implications of CLATs and CLUTs
• Ascertain key methods to properly structure CLTs for an income tax deduction and timing of trust income
• Ascertain methods to ensure optimum tax planning for CLT beneficiaries

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or firm experience preparing complex tax forms and schedules. Supervising other preparers/accountants. Specific knowledge and understanding of trusts, trust agreement provisions and calculating required payments to income recipients. Familiarity with UBTI rules, identification of various types of charitable split interest trusts and fiduciary accounting issues.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).