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 Nassau New York Charitable Inter Vivos Lead Annuity Trust is a legal and financial tool that allows individuals to make donations to charitable organizations while still earning income during their lifetime. This trust helps individuals support causes they care about while also enjoying potential tax benefits and preserving assets for their beneficiaries. The Charitable Inter Vivos Lead Annuity Trust, commonly known as FLAT, is a specific type of Nassau New York trust. It is a charitable lead trust that provides regular income payments to charities for a predetermined period, after which the remaining assets are transferred to the designated beneficiaries. This type of trust allows individuals to support multiple charitable causes during their lifetime and still pass on wealth to their loved ones. Other types of Nassau New York Charitable Inter Vivos Lead Annuity Trust include: 1. Charitable Remainder Annuity Trust (CAT): This trust functions in the opposite way to the FLAT. The CAT provides income payments to the donor or designated beneficiaries during their lifetime, and after their passing, the remaining assets are donated to charitable organizations. 2. Charitable Remainder Unit rust (CUT): Similar to the CAT, a CUT provides income payments to the donor or beneficiaries, but the income is calculated based on a fixed percentage (usually annually) of the trust's fair market value. This means that if the trust's value increases, the income payments also increase. 3. Flip Charitable Remainder Unit rust (Flip CUT): This trust starts as a Charitable Remainder Unit rust, but it "flips" into a Charitable Remainder Annuity Trust after a specific event or time period, ensuring a stable income stream for the beneficiaries. These different types of Nassau New York Charitable Inter Vivos Lead Annuity Trusts offer flexibility and various benefits based on the donor's financial goals and charitable intentions. It is important for individuals considering these trusts to consult with legal and financial professionals to understand their options and choose the most suitable trust for their specific circumstances.The Nassau New York Charitable Inter Vivos Lead Annuity Trust is a legal and financial tool that allows individuals to make donations to charitable organizations while still earning income during their lifetime. This trust helps individuals support causes they care about while also enjoying potential tax benefits and preserving assets for their beneficiaries. The Charitable Inter Vivos Lead Annuity Trust, commonly known as FLAT, is a specific type of Nassau New York trust. It is a charitable lead trust that provides regular income payments to charities for a predetermined period, after which the remaining assets are transferred to the designated beneficiaries. This type of trust allows individuals to support multiple charitable causes during their lifetime and still pass on wealth to their loved ones. Other types of Nassau New York Charitable Inter Vivos Lead Annuity Trust include: 1. Charitable Remainder Annuity Trust (CAT): This trust functions in the opposite way to the FLAT. The CAT provides income payments to the donor or designated beneficiaries during their lifetime, and after their passing, the remaining assets are donated to charitable organizations. 2. Charitable Remainder Unit rust (CUT): Similar to the CAT, a CUT provides income payments to the donor or beneficiaries, but the income is calculated based on a fixed percentage (usually annually) of the trust's fair market value. This means that if the trust's value increases, the income payments also increase. 3. Flip Charitable Remainder Unit rust (Flip CUT): This trust starts as a Charitable Remainder Unit rust, but it "flips" into a Charitable Remainder Annuity Trust after a specific event or time period, ensuring a stable income stream for the beneficiaries. These different types of Nassau New York Charitable Inter Vivos Lead Annuity Trusts offer flexibility and various benefits based on the donor's financial goals and charitable intentions. It is important for individuals considering these trusts to consult with legal and financial professionals to understand their options and choose the most suitable trust for their specific circumstances.
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.
