SC Lawyer, May 2004, #8. Charitable lead trusts.

• Author: By Michael L.M. Jordan

South Carolina Lawyer

2004.

SC Lawyer, May 2004, #8.

Charitable lead trusts

South Carolina LawyerMay 2004Charitable lead trustsBy Michael L.M. JordanIt was reported that Jackie Onassis had an estate of approximately $25 million but that virtually no estate tax was paid at her death.

How did she do that? She did it using a charitable lead trust.

Most of us do not have clients who have the wealth of Jackie Onassis. For that matter, most attorneys do not have that kind of wealth. However, if the size of a client's estate is such that he will be facing an estate tax liability at his death, then perhaps the client should consider using a charitable lead trust as part of his estate plan.

But, proper estate planning is not just for clients. It is also for all of us in the legal profession. We should not be the proverbial cobbler who has holes in his own shoes. A charitable lead trust might just be a very good technique for all of us to use as we develop our own estate planning as well as our clients'.

What is a charitable lead trust?

A charitable lead trust is a sophisticated way of both giving an immediate gift to the charity of a donor's choice such as a church or synagogue or other charity and ultimately transferring the assets to the donor's children. The transfer to the children will often occur at a significantly reduced estate and gift tax cost.

A charitable lead trust is the...