Forums Support Library CFP – Charitable Financial Planner Charitable Lead Annuity Trust Summary Report

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    • Kathleen Reynolds
      Post count: 428

      CLAT Summary

      The deduction for a charitable contribution of a guaranteed annuity interest is limited to the fair market value of such interest for transfers after November 30, 1983 (Treas. Reg. §1.170A-6(c)(3)(1); the value is computed under §20.2031-7).

      The annuity factor is multiplied by the annual dollar payout to calculate the present value of the annuity. The annuity factor varies according to when the annuity is paid. The program automatically enters the factor that should be used from the information you entered on the data input fields. (Factors may be found in IRS Publication 1457, Actuarial Values Alpha Volume or IRS Publication 723E.)

      For interest rates other than 10%, other adjustment factors must be used. The deduction for the annuity interest cannot exceed the value of property transferred to the trust.

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