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.
The North Carolina Inter Vivos Granter Charitable Lead Annuity Trust (FLAT) is a legal and financial tool used for charitable giving. It involves the creation of a trust by a granter who wishes to provide support to charitable organizations while also retaining control over their assets during their lifetime. A FLAT is considered "inter vivos" as it is established during the granter's lifetime and becomes effective immediately. It serves as a tax-efficient way to transfer assets to beneficiaries, such as family members or other individuals, while also benefiting charitable causes. The structure of a North Carolina Inter Vivos Granter Charitable Lead Annuity Trust typically involves the granter transferring assets, such as cash, securities, or real estate, into the trust. The granter then selects a charitable organization or multiple organizations to receive annual payments from the trust for a specified period, typically a fixed number of years. There are different types of North Carolina Inter Vivos Granter Charitable Lead Annuity Trusts including: 1. Non-grantor FLAT: In this type of FLAT, the trust is taxed as a separate entity, and the granter does not retain any control or benefit from the trust assets during their lifetime. The principal assets are ultimately distributed to non-charitable beneficiaries upon the expiration of the trust term. 2. Granter FLAT: In a granter FLAT, the granter retains control over the assets during their lifetime and may receive income from the trust. However, the gift tax deduction for the charitable transfer is realized immediately upon creating the trust. 3. Charitable Lead Unit rust: This is a variation of the FLAT where the annual payments to the charity are based on a fixed percentage of the trust's value, which is revalued annually. The granter's beneficiaries receive the remaining trust assets after the trust term ends. The North Carolina Inter Vivos Granter Charitable Lead Annuity Trust provides several benefits for both the granter and charitable organizations. It allows the granter to support causes they care about and potentially reduce estate taxes. It also provides a consistent income stream to charitable organizations, helping them fund their programs and initiatives. Furthermore, it is important for individuals interested in establishing a North Carolina Inter Vivos Granter Charitable Lead Annuity Trust to consult with legal and financial professionals to ensure compliance with specific state laws and to tailor the trust to their unique circumstances and charitable goals.The North Carolina Inter Vivos Granter Charitable Lead Annuity Trust (FLAT) is a legal and financial tool used for charitable giving. It involves the creation of a trust by a granter who wishes to provide support to charitable organizations while also retaining control over their assets during their lifetime. A FLAT is considered "inter vivos" as it is established during the granter's lifetime and becomes effective immediately. It serves as a tax-efficient way to transfer assets to beneficiaries, such as family members or other individuals, while also benefiting charitable causes. The structure of a North Carolina Inter Vivos Granter Charitable Lead Annuity Trust typically involves the granter transferring assets, such as cash, securities, or real estate, into the trust. The granter then selects a charitable organization or multiple organizations to receive annual payments from the trust for a specified period, typically a fixed number of years. There are different types of North Carolina Inter Vivos Granter Charitable Lead Annuity Trusts including: 1. Non-grantor FLAT: In this type of FLAT, the trust is taxed as a separate entity, and the granter does not retain any control or benefit from the trust assets during their lifetime. The principal assets are ultimately distributed to non-charitable beneficiaries upon the expiration of the trust term. 2. Granter FLAT: In a granter FLAT, the granter retains control over the assets during their lifetime and may receive income from the trust. However, the gift tax deduction for the charitable transfer is realized immediately upon creating the trust. 3. Charitable Lead Unit rust: This is a variation of the FLAT where the annual payments to the charity are based on a fixed percentage of the trust's value, which is revalued annually. The granter's beneficiaries receive the remaining trust assets after the trust term ends. The North Carolina Inter Vivos Granter Charitable Lead Annuity Trust provides several benefits for both the granter and charitable organizations. It allows the granter to support causes they care about and potentially reduce estate taxes. It also provides a consistent income stream to charitable organizations, helping them fund their programs and initiatives. Furthermore, it is important for individuals interested in establishing a North Carolina Inter Vivos Granter Charitable Lead Annuity Trust to consult with legal and financial professionals to ensure compliance with specific state laws and to tailor the trust to their unique circumstances and charitable goals.
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.
