The “Giving Pledge”
Enhanced Charitable Lead Annuity Trust
By: Richard S. Bernstein, CEO
Over the last few years, charities have reported a drop-off in donations. To help, several of the world’s wealthiest individuals such as Bill Gates and Warren Buffett have lead by example and developed a campaign called the “Giving Pledge”. This pledge is a commitment to give most of their wealth to philanthropic causes.
While everyone might not have the gifting power of Gates, Buffett, or a Zuckerberg, there are tools that will allow you to give to your favorite charity while still providing for the people you love.
For those who are motivated to make a difference by donating wealth to a charity, one valuable giving strategy for individuals to consider is an Enhanced Charitable Lead Annuity Trust (ECLAT).
An ECLAT leverages life insurance in order to provide a legacy by passing wealth to both charitable organizations as well as the donor’s loved ones. This irrevocable trust has flexibility in how it can be structured and provides the contributor with control by accommodating goals of charitable giving, tax planning and wealth transfer.
This trust allows one to donate assets, and depending on its design, can allow for income tax deduction. Popular among, and suited for high net worth individuals, there are different ways this concept works.
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