This is the ninth in a series of 23 tax tips that AdvisorOne will publish on each business day in March as part of our Tax Planning Special Report (see our Special Report calendar for a more complete list of topics to be covered and experts who will deliver their insights).
The tax tip today comes from Benjamin Ledyard, director of Wealth Strategies and regional director of the Mid-Atlantic for Silver Bridge Advisors. During his 15 years of experience in wealth management, he has developed expertise in financial, tax, wealth transfer, risk management, investment oversight, family governance, business succession, executive benefits and philanthropic planning.Ledyard holds aJD from Widener University School of Law and a bachelor’s degree from the University of Delaware.
The Tip: Give Multiple Ways With a Charitable Lead Annuity
When advisors have clients that have charitable intent, there is a wealth transfer strategy that has a philanthropic twist: charitable lead annuity trusts (CLATs). Ledyard (left) says this technique is especially suitable for high-net-worth families who seek to achieve their philanthropic goals and at the same time transfer property free of gift and estate tax to their children. He notes that CLATs are currently also very popular among charities and foundations because of their promise of a predictable income stream over a given period of time.