IRS Posts Charitable Lead Annuity Trust Letter Ruling
August 21, 2019 by Allison Bell
The Internal Revenue Service has posted an anonymized version of a letter ruling concerning a charitable lead annuity trust (CLAT).
A CLAT is a vehicle used in estate planning. A CLAT letter ruling could be of interest to financial professionals who are using life insurance, annuities or other instruments to help wealthy clients with estate planning.
The taxpayer who is setting up the CLAT at the heart of the new IRS letter ruling plans to create a revocable trust.
If the taxpayer dies before the taxpayer’s spouse, then the trust is supposed to pay specified debts and expenses, then distribute property and cash to other individuals and trusts.