Which Should You Choose?

A charitable lead annuity trust (CLAT) using a low Internal Revenue Code Section 7520 rate can be more transfer-tax effective than a charitable lead unitrust (CLUT) if property passes to children. But the CLUT is likely to be more transfer-tax effective than a CLAT if property passes to skip persons. Consider this example: CLATVs.CLUT A client transfers $1.8 million into a non-grantor charitable lead

Douglas Moore | Jun 01, 2009

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A charitable lead annuity trust (CLAT) using a low Internal Revenue Code Section 7520 rate can be more transfer-tax effective than a charitable lead unitrust (CLUT) if property passes to children. But the CLUT is likely to be more transfer-tax effective than a CLAT if property passes to skip persons.

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