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.
A Minnesota Inter Vivos Granter Charitable Lead Annuity Trust (MING FLAT) is a specific type of trust established in the state of Minnesota that allows individuals to make charitable donations while also potentially reducing their taxable income. This trust is designed to provide annual income to charitable organizations for a specified period, with the remaining trust assets eventually passing to non-charitable beneficiaries, usually family members or other designated individuals. Keywords: Minnesota Inter Vivos Granter Charitable Lead Annuity Trust, MING FLAT, trust, charitable donations, taxable income, annual income, charitable organizations, trust assets, non-charitable beneficiaries, family members, designated individuals. There are different types of Minnesota Inter Vivos Granter Charitable Lead Annuity Trusts that individuals can consider based on their specific goals and preferences. These variations include: 1. Charitable Lead Unit rust (CLU): In this type of MING FLAT, the annual income provided to charitable organizations is based on a fixed percentage (usually 5%) of the trust's fair market value, determined annually. The remaining trust assets pass to non-charitable beneficiaries at the end of the trust term. 2. Charitable Lead Annuity Trust (FLAT): Unlike the CLU, this type of MING FLAT provides a fixed annuity payment to charitable organizations every year for the specified trust term. The annuity amount is determined at the time of trust creation and remains unchanged throughout the term. Any remaining trust assets transfer to non-charitable beneficiaries after the trust term ends. 3. Flip FLAT: This unique type of MING FLAT allows the trust to convert from providing income to charitable organizations to becoming a traditional wealth transfer trust for non-charitable beneficiaries. The conversion occurs when specific triggering events predetermined in the trust document take place, such as a decrease in the trust's value or a change in tax regulations. 4. Granter Retained Annuity Trust (GREAT) with Charitable Lead: While not specific to Minnesota, this variation combines the features of a Granter Retained Annuity Trust (GREAT) with a Charitable Lead Annuity Trust. It enables the granter to transfer assets to the trust, retain a fixed annuity payment for a specified term, with any remaining trust assets passing to both charitable and non-charitable beneficiaries. In summary, the Minnesota Inter Vivos Granter Charitable Lead Annuity Trust is a sophisticated estate planning tool that enables individuals to support charitable causes while potentially obtaining tax benefits. By understanding the different types of MING Class available, individuals can tailor their charitable giving strategies to align with their specific preferences and goals, allowing them to leave a lasting impact on both charitable organizations and their loved ones.A Minnesota Inter Vivos Granter Charitable Lead Annuity Trust (MING FLAT) is a specific type of trust established in the state of Minnesota that allows individuals to make charitable donations while also potentially reducing their taxable income. This trust is designed to provide annual income to charitable organizations for a specified period, with the remaining trust assets eventually passing to non-charitable beneficiaries, usually family members or other designated individuals. Keywords: Minnesota Inter Vivos Granter Charitable Lead Annuity Trust, MING FLAT, trust, charitable donations, taxable income, annual income, charitable organizations, trust assets, non-charitable beneficiaries, family members, designated individuals. There are different types of Minnesota Inter Vivos Granter Charitable Lead Annuity Trusts that individuals can consider based on their specific goals and preferences. These variations include: 1. Charitable Lead Unit rust (CLU): In this type of MING FLAT, the annual income provided to charitable organizations is based on a fixed percentage (usually 5%) of the trust's fair market value, determined annually. The remaining trust assets pass to non-charitable beneficiaries at the end of the trust term. 2. Charitable Lead Annuity Trust (FLAT): Unlike the CLU, this type of MING FLAT provides a fixed annuity payment to charitable organizations every year for the specified trust term. The annuity amount is determined at the time of trust creation and remains unchanged throughout the term. Any remaining trust assets transfer to non-charitable beneficiaries after the trust term ends. 3. Flip FLAT: This unique type of MING FLAT allows the trust to convert from providing income to charitable organizations to becoming a traditional wealth transfer trust for non-charitable beneficiaries. The conversion occurs when specific triggering events predetermined in the trust document take place, such as a decrease in the trust's value or a change in tax regulations. 4. Granter Retained Annuity Trust (GREAT) with Charitable Lead: While not specific to Minnesota, this variation combines the features of a Granter Retained Annuity Trust (GREAT) with a Charitable Lead Annuity Trust. It enables the granter to transfer assets to the trust, retain a fixed annuity payment for a specified term, with any remaining trust assets passing to both charitable and non-charitable beneficiaries. In summary, the Minnesota Inter Vivos Granter Charitable Lead Annuity Trust is a sophisticated estate planning tool that enables individuals to support charitable causes while potentially obtaining tax benefits. By understanding the different types of MING Class available, individuals can tailor their charitable giving strategies to align with their specific preferences and goals, allowing them to leave a lasting impact on both charitable organizations and their loved ones.
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.
