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 Mississippi Inter Vivos Granter Charitable Lead Annuity Trust, also known as a FLAT, is a specialized trust created by an individual (the granter) during their lifetime to provide income to a charitable organization for a specified period, after which, the remaining assets are distributed to non-charitable beneficiaries, typically family members. This type of trust allows the granter to make charitable contributions while also providing a financial benefit to their loved ones. Keyword: Mississippi Inter Vivos Granter Charitable Lead Annuity Trust There are two primary types of Class that can be established in Mississippi: 1. Charitable Lead Annuity Trust (FLAT): In a FLAT, the granter contributes assets to the trust and designates a specific annuity payment to be made to the charitable organization(s) every year for a predetermined period. This annuity payment can be a fixed dollar amount or a percentage of the initial trust assets. At the end of the designated term, the remaining assets pass to the non-charitable beneficiaries, typically family members. The amount of the charitable contribution and the annuity payment are determined at the time of creation. 2. Charitable Lead Unit rust (CLUB): In a CLUB, similar to a FLAT, the granter transfers assets to the trust, but instead of a fixed annuity payment, the charitable organization(s) receive a percentage of the trust assets recalculated annually. The percentage can range from 5% to 50% of the fair market value of the trust's assets. The value of the annuity payment fluctuates each year based on the trust's performance, ensuring that the charitable beneficiaries receive a potentially increased income if the trust assets appreciate. Mississippi Inter Vivos Granter Charitable Lead Annuity Trusts offer several benefits to the granter, including: 1. Charitable Giving: By establishing a FLAT, the granter can support their chosen charitable causes during their lifetime. This allows them to see the impact of their philanthropy firsthand. 2. Estate Tax Reduction: Class are valuable estate planning tools designed to potentially reduce the granter's taxable estate. The value of the charitable contribution made through the annuity payments is subtracted from the granter's assets for estate tax purposes. 3. Income Stream for Beneficiaries: After the charitable period ends, any remaining assets in the trust are passed on to the non-charitable beneficiaries, often family members, providing them with a potential source of income. Before setting up a Mississippi Inter Vivos Granter Charitable Lead Annuity Trust, individuals must carefully consider their financial situation, charitable intentions, and consult with legal and financial professionals to ensure compliance and maximize the benefits of this trust structure.A Mississippi Inter Vivos Granter Charitable Lead Annuity Trust, also known as a FLAT, is a specialized trust created by an individual (the granter) during their lifetime to provide income to a charitable organization for a specified period, after which, the remaining assets are distributed to non-charitable beneficiaries, typically family members. This type of trust allows the granter to make charitable contributions while also providing a financial benefit to their loved ones. Keyword: Mississippi Inter Vivos Granter Charitable Lead Annuity Trust There are two primary types of Class that can be established in Mississippi: 1. Charitable Lead Annuity Trust (FLAT): In a FLAT, the granter contributes assets to the trust and designates a specific annuity payment to be made to the charitable organization(s) every year for a predetermined period. This annuity payment can be a fixed dollar amount or a percentage of the initial trust assets. At the end of the designated term, the remaining assets pass to the non-charitable beneficiaries, typically family members. The amount of the charitable contribution and the annuity payment are determined at the time of creation. 2. Charitable Lead Unit rust (CLUB): In a CLUB, similar to a FLAT, the granter transfers assets to the trust, but instead of a fixed annuity payment, the charitable organization(s) receive a percentage of the trust assets recalculated annually. The percentage can range from 5% to 50% of the fair market value of the trust's assets. The value of the annuity payment fluctuates each year based on the trust's performance, ensuring that the charitable beneficiaries receive a potentially increased income if the trust assets appreciate. Mississippi Inter Vivos Granter Charitable Lead Annuity Trusts offer several benefits to the granter, including: 1. Charitable Giving: By establishing a FLAT, the granter can support their chosen charitable causes during their lifetime. This allows them to see the impact of their philanthropy firsthand. 2. Estate Tax Reduction: Class are valuable estate planning tools designed to potentially reduce the granter's taxable estate. The value of the charitable contribution made through the annuity payments is subtracted from the granter's assets for estate tax purposes. 3. Income Stream for Beneficiaries: After the charitable period ends, any remaining assets in the trust are passed on to the non-charitable beneficiaries, often family members, providing them with a potential source of income. Before setting up a Mississippi Inter Vivos Granter Charitable Lead Annuity Trust, individuals must carefully consider their financial situation, charitable intentions, and consult with legal and financial professionals to ensure compliance and maximize the benefits of this trust structure.
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.
