Bryan K. Clontz (Forbes): Charitable Remainder Annuity Trust Opportunities Under Rising Interest Rates (January 31, 2023)

Bryan K. Clontz, of Forbes Magazine, has made available for download his article, Charitable Remainder Annuity Trust Opportunities Under Rising Interest Rates, published in Forbes. The abstract is as follows:

For various reasons, the charitable remainder annuity trust has long been underutilized as a gift planning vehicle. At any given moment there may be somewhat over a hundred thousand split interest trusts in existence, but only about one in eight of these is a CRAT.

But with interest rates rapidly rising over the past year, this may begin to change. Income and remainder interests in a trust are valued with reference to a rate of return assumption, the so-called section 7520 rate, which is keyed to current yields on mid-term Treasuries. When current yields are low, a fixed annuity will tend to deplete trust principal, and this fact is reflected in the present value of the deductible remainder to charity.

Click here to view Bryan K. Clontz’s summary of Charitable Remainder Annuity Trust Opportunities Under Rising Interest Rates

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s