In a charitable lead trust, 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. At the end of the trust term, the remaining assets in the trust and any growth it has realized are passed to donor's heirs. Although there is no income tax deduction when the donor creates a charitable lead trust, his/her gift or estate tax is greatly discounted and any growth is passed to his/her heirs gift and estate tax free.
In a charitable lead unitrust, a donor irrevocably transfers cash, closely held securities or other valuable property to a trustee who, during the unitrusts term, invests the unitrust's assets. Each year, the trustee distributes a fixed percentage of the unitrust's net asset value, as calculated annually, to a named charity. These payments are made out of trust income (or trust principal if the trust income is not adequate) and are tax deductible as a charitable contribution for the year in which they are made. If, however, trust income exceeds the charitable payment for a given year, the trust pays income tax on the excess.
When the lead unitrust term ends, the unitrust distributes the remainder of its accumulated assets to a non-charitable remainderman, usually family members or other beneficiaries named by the donor. That amount is subject to federal gift tax based on the current fair market value of the gift at the time the trust is established. Gift tax is paid on the remainder interest as calculated from the current fair market value of the asset at the time the trust is established; generally this amount is much less than the estate tax would be on the asset as calculated at the time it is inherited.
Description: A Charitable Lead Inter Vivos Unit rust (CLT) is a type of charitable trust that is established during the lifetime of the donor (inter vivos) and designed to benefit both a charitable organization and non-charitable beneficiaries. One such CLT is the Alameda California Charitable Lead Inter Vivos Unit rust. The Alameda California Charitable Lead Inter Vivos Unit rust is specifically created to support charitable causes and organizations within the Alameda region of California. It provides a unique opportunity for donors to contribute to their local community and make a difference in various philanthropic endeavors. By establishing this Unit rust, donors can allocate a portion of their assets to fund charitable projects and programs in Alameda. The trust is managed by a trustee who ensures that the designated charitable organizations receive regular distributions from the trust's income for a predetermined period. One important aspect of the Alameda California Charitable Lead Inter Vivos Unit rust is that it allows donors to name specific charitable organizations and determine the duration for which the trust will make the annual distributions. This flexibility ensures that the donor's charitable intent is fulfilled in alignment with their personal values and passions. The Alameda California Charitable Lead Inter Vivos Unit rust offers diverse opportunities for donors to support various causes. Donors can focus their charitable contributions to areas such as education, healthcare, social services, environmental conservation, arts and culture, and much more. This allows for a customized approach to philanthropy, allowing donors to address the specific needs of their community and make a lasting impact. In summary, the Alameda California Charitable Lead Inter Vivos Unit rust is a charitable trust established by donors during their lifetime to benefit charitable organizations within the Alameda region. It offers a flexible and impactful way to support local causes and make a positive change in the community. By utilizing this type of trust, donors can leave a lasting legacy while also benefiting non-charitable beneficiaries, ensuring their philanthropic goals are met.Description: A Charitable Lead Inter Vivos Unit rust (CLT) is a type of charitable trust that is established during the lifetime of the donor (inter vivos) and designed to benefit both a charitable organization and non-charitable beneficiaries. One such CLT is the Alameda California Charitable Lead Inter Vivos Unit rust. The Alameda California Charitable Lead Inter Vivos Unit rust is specifically created to support charitable causes and organizations within the Alameda region of California. It provides a unique opportunity for donors to contribute to their local community and make a difference in various philanthropic endeavors. By establishing this Unit rust, donors can allocate a portion of their assets to fund charitable projects and programs in Alameda. The trust is managed by a trustee who ensures that the designated charitable organizations receive regular distributions from the trust's income for a predetermined period. One important aspect of the Alameda California Charitable Lead Inter Vivos Unit rust is that it allows donors to name specific charitable organizations and determine the duration for which the trust will make the annual distributions. This flexibility ensures that the donor's charitable intent is fulfilled in alignment with their personal values and passions. The Alameda California Charitable Lead Inter Vivos Unit rust offers diverse opportunities for donors to support various causes. Donors can focus their charitable contributions to areas such as education, healthcare, social services, environmental conservation, arts and culture, and much more. This allows for a customized approach to philanthropy, allowing donors to address the specific needs of their community and make a lasting impact. In summary, the Alameda California Charitable Lead Inter Vivos Unit rust is a charitable trust established by donors during their lifetime to benefit charitable organizations within the Alameda region. It offers a flexible and impactful way to support local causes and make a positive change in the community. By utilizing this type of trust, donors can leave a lasting legacy while also benefiting non-charitable beneficiaries, ensuring their philanthropic goals are met.
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.
