In a charitable lead trust, the lifetime payments go to the charity and the remainder returns to the donor or to the donor's estate or other beneficiaries. A donor transfers property to the lead trust, which pays a percentage of the value of the trust assets, usually for a term of years, to the charity. Unlike a charitable remainder trust, a charitable lead annuity trust creates no income tax deduction to the donor, but the income earned in the trust is not attributed to donor. The trust itself is taxed according to trust rates. The trust receives an income tax deduction for the income paid to charity.
The New Mexico Charitable Inter Vivos Lead Annuity Trust (NM CI LAT) is a type of trust established in New Mexico for the purpose of benefiting both charitable organizations and the trust's beneficiaries. It allows individuals to make substantial contributions to charities while also providing a stream of income for a fixed period of time to the trust's designated beneficiaries. NM Class are efficient estate planning tools that offer potential tax benefits to the granter. By transferring assets to the trust, the granter can claim an immediate charitable deduction for the present value of the charitable interest. This deduction can help reduce the granter's income tax liability or potentially lower their taxable estate. There are two main types of NM Class: the Charitable Lead Annuity Trust (FLAT) and the Charitable Lead Unit rust (CLUB). Both types operate similarly but have distinct differences in terms of income distribution and flexibility. 1. Charitable Lead Annuity Trust (FLAT): The FLAT pays a fixed amount (annuity) to the charitable organization(s) for a specific term, typically for a predetermined number of years. At the end of the term, the remaining trust assets are distributed to the non-charitable beneficiaries, such as family members or other individuals named by the granter. 2. Charitable Lead Unit rust (CLUB): Unlike the FLAT, the CLUB distributes a fixed percentage (unit rust amount) of the trust's value, which is revalued annually. This allows for potential growth of trust assets, resulting in increased future distributions to the non-charitable beneficiaries. The term of the CLUB can also be set for a specific number of years or for the lifetime of one or more individuals. NM Class offer donors the opportunity to support charitable causes they care about while preserving wealth for their beneficiaries. Additionally, these trusts provide asset protection advantages, as the charitable interest is typically shielded from potential creditor claims. It is important to consult with an experienced attorney or financial advisor to navigate the complexities of establishing and managing a New Mexico Charitable Inter Vivos Lead Annuity Trust, ensuring that it aligns with the granter's philanthropic goals and financial objectives. Keywords: New Mexico, Charitable Inter Vivos Lead Annuity Trust, NM CI LAT, charitable organizations, estate planning, tax benefits, granter, charitable deduction, income tax liability, taxable estate, Charitable Lead Annuity Trust, FLAT, Charitable Lead Unit rust, CLUB, annuity, unit rust amount, non-charitable beneficiaries, asset protection, donor, philanthropic goals.The New Mexico Charitable Inter Vivos Lead Annuity Trust (NM CI LAT) is a type of trust established in New Mexico for the purpose of benefiting both charitable organizations and the trust's beneficiaries. It allows individuals to make substantial contributions to charities while also providing a stream of income for a fixed period of time to the trust's designated beneficiaries. NM Class are efficient estate planning tools that offer potential tax benefits to the granter. By transferring assets to the trust, the granter can claim an immediate charitable deduction for the present value of the charitable interest. This deduction can help reduce the granter's income tax liability or potentially lower their taxable estate. There are two main types of NM Class: the Charitable Lead Annuity Trust (FLAT) and the Charitable Lead Unit rust (CLUB). Both types operate similarly but have distinct differences in terms of income distribution and flexibility. 1. Charitable Lead Annuity Trust (FLAT): The FLAT pays a fixed amount (annuity) to the charitable organization(s) for a specific term, typically for a predetermined number of years. At the end of the term, the remaining trust assets are distributed to the non-charitable beneficiaries, such as family members or other individuals named by the granter. 2. Charitable Lead Unit rust (CLUB): Unlike the FLAT, the CLUB distributes a fixed percentage (unit rust amount) of the trust's value, which is revalued annually. This allows for potential growth of trust assets, resulting in increased future distributions to the non-charitable beneficiaries. The term of the CLUB can also be set for a specific number of years or for the lifetime of one or more individuals. NM Class offer donors the opportunity to support charitable causes they care about while preserving wealth for their beneficiaries. Additionally, these trusts provide asset protection advantages, as the charitable interest is typically shielded from potential creditor claims. It is important to consult with an experienced attorney or financial advisor to navigate the complexities of establishing and managing a New Mexico Charitable Inter Vivos Lead Annuity Trust, ensuring that it aligns with the granter's philanthropic goals and financial objectives. Keywords: New Mexico, Charitable Inter Vivos Lead Annuity Trust, NM CI LAT, charitable organizations, estate planning, tax benefits, granter, charitable deduction, income tax liability, taxable estate, Charitable Lead Annuity Trust, FLAT, Charitable Lead Unit rust, CLUB, annuity, unit rust amount, non-charitable beneficiaries, asset protection, donor, philanthropic 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.
