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Providing after-death support to charities through CLATs

Many people here in Texas have charitable organizations that they strongly admire the work of and care a great deal about. Sometimes, a person will have a desire to not only support the charitable organizations they care about during their lifetime, but to provide such support after their death as well. Estate planning can make fulfilling this desire possible.

There are many different types of after-death goals a person can set their estate plan to achieve. Providing after-death financial support to charitable organizations is one such goal.   

There are multiple different things a person could include in their estate plan to direct support to charitable organizations they care about after they die. Today's post will be focused on one of these things: charitable lead annuity trusts.

These trusts, sometimes called CLATs, generally contain terms directing that money in the trust be regularly sent to a given charitable organization for a certain number of years. These trusts also generally contain terms directing that, once this period of time is over, any money that is left over in the trust will be sent to beneficiaries named in the trust.

Such trusts can be set up to go active during a person's life or at the event of their death.  

One thing worth noting about CLATs is that they not only can help achieve the goal of providing after-death support to a charity, but also can sometimes have estate tax minimization benefits. 

Now, as is the case with any estate planning device used for providing support to charities, whether a CLAT is right for a given person's estate plan is dependent on many things, including the specific goals the person wants their estate plan to achieve. 

Our firm can help those who want to provide for a charitable organization in their estate plan with questions they have about CLATs and other estate planning devices used for giving to charitable organizations and can assist such individuals in determining what sorts of estate planning devices are best-suited for what they want to do. We are committed to helping our estate planning clients properly align their estate plan to their goals.

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