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What is a Testamentary Charitable Lead Annuity Trust (TCLAT)?

April 26, 2017Annuity charitable lead Testamentary Trust

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What is a Testamentary Charitable Lead Annuity Trust (TCLAT)?

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A testamentary charitable lead annuity trust is established at the death of the grantor. It pays a fixed annuity percentage to charity for a period of time then the remaining assets are transferred to the grantor’s beneficiaries. Most TCLATs are structured to create a “zero” transfer tax and are often used to eliminate any estate that would be due from the grantor’s estate.