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.
Maine Inter Vivos Granter Charitable Lead Annuity Trust (also known as Maine WILDCAT) is a type of charitable trust that allows individuals to make significant charitable donations while retaining some benefits during their lifetime. This trust is established in accordance with Maine state laws and is an effective estate planning tool for those who wish to support charitable causes in Maine. In a Maine Inter Vivos Granter Charitable Lead Annuity Trust, the granter transfers assets, such as cash, real estate, or securities, to the trust. The trust is responsible for making annual payments to one or more charitable organizations chosen by the granter. These payments are in the form of a fixed annuity amount based on a percentage of the initial contribution or a fixed dollar amount. There are different types of Maine Inter Vivos Granter Charitable Lead Annuity Trusts available, including: 1. Standard Inter Vivos Granter Charitable Lead Annuity Trust: This is the most common type of WILDCAT, where the donor receives an income tax deduction based on the present value of the charitable payments made to the chosen charitable organizations. 2. Granter Retained Inter Vivos Granter Charitable Lead Annuity Trust: In this type of WILDCAT, the granter retains the right to receive income from the trust during their lifetime. Once the granter passes away, the remaining trust assets are distributed to the chosen charitable organizations. 3. Non-Grantor Inter Vivos Granter Charitable Lead Annuity Trust: In this variation, the granter does not retain any income interest or control over the trust assets during their lifetime. The trust generates income that is paid to the charitable organizations for a specified period, after which the remaining trust assets are distributed to non-charitable beneficiaries, such as family members. Maine Wildcats offer several benefits, such as reducing estate taxes, providing an income tax deduction, and allowing individuals to support charitable causes that align with their values and interests. It is important to consult with legal and financial professionals to ensure compliance with Maine state laws and to understand the specific implications of establishing a Maine Inter Vivos Granter Charitable Lead Annuity Trust.
