Everything you always wanted to know about charitable lead trusts but were afraid to ask.

By Kathleen Stephenson and Lisa B. Petkun

The applicable federal rate, the amount of the annuity or unitrust interest and the length of the lead term are used to calculate the value of the charitable interest. With respect to a CLAT, that rate may have a significant impact on the charitable deduction. (Lower rates produce a greater charitable deduction.)