Charitable Lead Annuity Trust (CLAT)
Make fixed charitable donations for a set period, then pass remaining assets to heirs tax-efficiently
How It Works
Work with an attorney to establish an irrevocable trust that pays a fixed annuity to your chosen charities
Transfer an appreciated position — stock, private shares, or crypto — into the trust and receive a gift/estate tax deduction
The trust makes annual charitable payments for a specified term (typically 10–20 years)
At the end of the term, remaining trust assets (including all growth) pass to your heirs with reduced or zero gift tax
Key Benefits
Charitable Impact
Provide predictable, meaningful annual funding to the causes and organizations you care about most
Tax Deduction
Receive an immediate gift or estate tax deduction based on the present value of the charitable annuity stream
Wealth Transfer
Pass all remaining trust assets and growth above the IRS Section 7520 rate to your heirs gift-tax free
Who This Is For
Holders of appreciated assets with $3M+ who want to combine charitable giving with estate planning. Ideal for those expecting significant asset appreciation who want to transfer wealth to heirs while supporting charities during the trust term.
By The Numbers
30-50%
Immediate Deduction
$3M
Minimum Position
15 years
Typical Term
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