(January 19) – “Despite their growing popularity, planned gifts should be approached with caution,” writes Lisa Fratt for Worth.com.

“Planned gifts, such as charitable remainder trusts and charitable lead trusts, are growing in popularity among baby boomers who see them as a way to satisfy their philanthropic impulses while also trimming their tax bills.

“According to a recent survey by the [American] National Committee on Planned Giving, 34% of donors who established charitable remainder trusts (CRTs) — a standard planned-giving arrangement in which assets are donated to charity in return for a lifetime income — were under the age of 55.

“‘Baby boomers are attracted to planned giving for two reasons,’ says Frank Minton, president of Planned Giving Services, a consulting firm for charities, estate planners and individual donors. First, ‘Many young adults have attained wealth at an early age and concluded that they have more now than they need or will likely ever need,’ he says. Second, they see certain planned-giving arrangements as a way to solve tax problems resulting from their sudden wealth.

“Despite their current cachet, planned gifts should be approached with caution, especially if you are under 50.