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Thu
19
Jun
2008

Charitable Lead Trust created post mortem of Grantor?

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Can an estate create a Charitable Lead Trust after the death of the Grantor and have it be a valid CLT? I have a client who's father just passed away in April and the Executor of the estate realizes that the beneficiaries of the estate have no urgent need to receive their shares. The executor and my client are intrigued by the way a CLT could enhance the legacy of the deceased father. Could someone please let me know if this is a viable concept that can be implemented after death of grantor, where no previous Charitable Lead Trust has been executed?
Fri
11
Jul
2008
74
points
#1 by john b. atkins    

after death CLT

I was surprised no one passed along any comment to your question. Unfortunately, a CLT cannot be created and considered part of the decedent's dispositive provisions of his will. The executor cannot create a charitable deduction when none was provided. As the beneficiaries have no urgent need (now), perhaps each could create their own CLUT in memory of their father and pass the remainder to their issue after analyzing all gift tax, estate tax, and generation skipping tax consequences. Do things apparently the decedent either didn't pursue or didn't care to.