A Grantor Charitable Lead Annuity Trust (CLAT) is an irrevocable split-interest trust that provides for a specified amount to be paid to one or more charitable beneficiaries during the term of the trust. The principal remaining in the trust at the end of the term is paid over to, or held in a continuing trust for, a non-charitable beneficiary or beneficiaries identified in the trust. If the terms of a CLAT created during the donor's life satisfy the applicable statutory and regulatory requirements, a gift of the charitable lead annuity interest will qualify for the gift tax charitable deduction under § 2522(c)(2)(B) and/or the estate tax charitable deduction under § 2055(e)(2)(B). In certain cases, the gift of the annuity interest may also qualify for the income tax charitable deduction under § 170(a). The value of the remainder interest is a taxable gift by the donor at the time of the donor's contribution to the trust.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
An Illinois Inter Vivos Granter Charitable Lead Annuity Trust is a specific type of trust established in Illinois that allows the granter to make charitable donations while also providing an income stream for designated beneficiaries. This trust is created during the granter's lifetime, hence the term "inter vivos," and is irrevocable, meaning it cannot be changed or revoked once established. In an Illinois Inter Vivos Granter Charitable Lead Annuity Trust, the granter places assets into the trust and selects one or more charitable organizations to receive annual payments for a specified number of years or for the granter's lifetime. The amount of the annuity payment is predetermined and remains the same throughout the trust's duration, hence the term "annuity" in its name. The charitable organizations chosen by the granter must qualify under the Internal Revenue Code Section 501(c)(3). The income generated by the assets within the trust is used to fulfill the annual payments to the designated charitable organizations. After the specified period of time or the granter's death, the remaining assets in the trust are distributed to non-charitable beneficiaries, such as family members or other individuals named by the granter. These beneficiaries typically receive the assets free of estate taxes. There are variations of the Illinois Inter Vivos Granter Charitable Lead Annuity Trust, including the Charitable Lead Unit rust (CLUB), which pays a set percentage of the trust's value each year instead of a fixed annuity payment. Another variation is the Charitable Lead Annuity Trust (FLAT), which distributes a fixed annuity payment to the charitable organizations for a specified period, after which the remaining assets are divided among non-charitable beneficiaries. Creating an Illinois Inter Vivos Granter Charitable Lead Annuity Trust can provide several benefits for the granter. It allows for philanthropic giving to charitable organizations that align with the granter's values, while also potentially reducing the granter's taxable estate. Furthermore, this type of trust can provide a steady income stream for designated beneficiaries during the trust's term. It is important to consult with a qualified attorney or financial advisor who specializes in estate planning to ensure that this trust aligns with individual goals and objectives.An Illinois Inter Vivos Granter Charitable Lead Annuity Trust is a specific type of trust established in Illinois that allows the granter to make charitable donations while also providing an income stream for designated beneficiaries. This trust is created during the granter's lifetime, hence the term "inter vivos," and is irrevocable, meaning it cannot be changed or revoked once established. In an Illinois Inter Vivos Granter Charitable Lead Annuity Trust, the granter places assets into the trust and selects one or more charitable organizations to receive annual payments for a specified number of years or for the granter's lifetime. The amount of the annuity payment is predetermined and remains the same throughout the trust's duration, hence the term "annuity" in its name. The charitable organizations chosen by the granter must qualify under the Internal Revenue Code Section 501(c)(3). The income generated by the assets within the trust is used to fulfill the annual payments to the designated charitable organizations. After the specified period of time or the granter's death, the remaining assets in the trust are distributed to non-charitable beneficiaries, such as family members or other individuals named by the granter. These beneficiaries typically receive the assets free of estate taxes. There are variations of the Illinois Inter Vivos Granter Charitable Lead Annuity Trust, including the Charitable Lead Unit rust (CLUB), which pays a set percentage of the trust's value each year instead of a fixed annuity payment. Another variation is the Charitable Lead Annuity Trust (FLAT), which distributes a fixed annuity payment to the charitable organizations for a specified period, after which the remaining assets are divided among non-charitable beneficiaries. Creating an Illinois Inter Vivos Granter Charitable Lead Annuity Trust can provide several benefits for the granter. It allows for philanthropic giving to charitable organizations that align with the granter's values, while also potentially reducing the granter's taxable estate. Furthermore, this type of trust can provide a steady income stream for designated beneficiaries during the trust's term. It is important to consult with a qualified attorney or financial advisor who specializes in estate planning to ensure that this trust aligns with individual goals and objectives.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
