Read previewWhen the rich give to charity, they find a way to get the most bang for their buck.
If the trust assets are invested and achieve an annual rate of return of 9% a year, the CLT's remainder will be $2.1 million.
Advertisement"It's a fantastic low interest rate play," said Renn.
"The problem now is rates have really risen and it's to the point where some investments clearly can outperform a 4% or 5% interest rate, but others might struggle."
In this interest rate environment, charitable remainder trusts (CRTs) have better odds.
Persons:
—, Jacqueline Kennedy Onassis, Walton, Lance Morgan, Ed Renn, I've, Renn, Dan Griffith, Griffith, CLTs, Onassis, CLATs, Alice, Jim Walton, Rick T, Jennifer Galvagna, Michael Prinzo, they're
Organizations:
Service, Tax, Business, Bloomberg, Huntington Private Bank, Walmart, Bank of America Private Bank
Locations:
Withersworldwide, CLTs, Fayetteville , Arkansas, Israel, Palestine