Estate Planning: Part Two of a Three Part Series
November 19, 2007

Part Two of a Three Part Series:

In part one, we discussed the use a tool sometimes referred to as a charitable stock bailout. This week we describe the use of a testamentary charitable lead trust. How about the idea of having control of your finances until your death and then zeroing out estate tax? With a little calculation one can mitigate the estate tax costs of leaving assets to your heirs using this tool. Practically speaking, the deceased bequeaths assets to a trustee to pay an income stream to a public charity for a certain period of time. At the end of that period of time the assets are then turned over to heirs named by the deceased. This is a particularly efficient tool when there are grand children involved. Through the use of a testamentary charitable lead unitrust, one can choose a term of 20 or more years to defer the inheritance with a reasonable income stream paid to charity each year. At the end of the term, the grandchildren receive the assets. As always, you should contact a qualified professional to help you plan using this idea.

If you have questions, please contact:
Charles B. Jones, Esq.

(410) 752-2468