From Fortune:



84-year-old retired IRS Commissioner John Koskinen, who sits on the board of several non-profit organizations and is an advisor to two startups, has set up a charity lead annuity trust (CLAT) for his alma mater, Duke University. The CLAT has funded athletic scholarships and a stadium leading the university’s sports program to national prominence. Using a CLAT, donors are able to make a charitable donation and receive an immediate income and tax benefits. Moreover, an improved variant called an Optimized CLAT provides further benefits to the donor and the university. It is a good time to invest in CLAT, according to Koskinen, who asserts that it is a way to support established institutions and provide professional financial management. Despite the clear benefits, the CLAT is underutilized. The CLAT has also allowed Koskinen to focus on his public service and passion projects by freeing him from financial obligations.

Koskinen commissioned a CLAT to support Duke University. The use of a CLAT and the endowment strategy have helped elevate the university’s sports program to national prominence, while adhering to Koskinen’s desire to give educational opportunities to others. Tax benefits and an immediate income were preserved tax-free for Koskinen’s heirs after the charity’s lock-up period with his CLAT. Koskinen has focused on public service and passion projects later in his life with his financial obligations secured through the CLAT, which has proven to be beneficial and beneficial for both institutions and people. The article is an interesting read about the significant benefits and potential of the CLAT estate planning tool for philanthropy and generational wealth.



Read more: How a former IRS boss optimizes his charitable trust to support his alma mater–and give assets to his children tax-free