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 Chicago Illinois Inter Vivos Granter Charitable Lead Annuity Trust (FLAT) refers to a specific type of estate planning tool frequently used by individuals residing in Chicago, Illinois. This trust structure allows the granter to support charitable organizations while also ensuring their beneficiaries receive assets or income through an annuity. A FLAT is established during the granter's lifetime, hence the term "inter vivos." The granter transfers assets into the trust and designates a charitable organization as the lead beneficiary. The intent of the trust is to provide annual payments to the designated charitable organization for a predetermined period, typically a fixed number of years or the lifetime of one or more individuals. By creating a FLAT, the granter may simultaneously benefit charitable causes close to their heart and maintain control over the ultimate disposition of the trust assets. Upon the termination of the specified period, the remaining assets within the trust are distributed to one or more non-charitable beneficiaries, often family members or other loved ones. Different types of Chicago Illinois Inter Vivos Granter Charitable Lead Annuity Trust may include: 1. Term Charitable Lead Annuity Trust: In this type of FLAT, the charitable organization will receive annuity payments for a fixed period determined by the granter. Once this period concludes, the remaining assets will pass to the non-charitable beneficiaries. 2. Granter Retained Annuity Trust (GREAT): Although this is a similar trust structure, it differs as the granter retains the right to receive annuity payments from the trust, rather than a charitable organization. Upon the trust's termination, the remaining assets are typically transferred to non-charitable beneficiaries. 3. Charitable Remainder Trust (CRT): While not an Inter Vivos Granter FLAT, a CRT can be seen as a complementary structure. In a CRT, the charity receives the remainder of the trust assets at its termination, leaving the non-charitable beneficiaries with an income interest during the trust's existence. Overall, the Chicago Illinois Inter Vivos Granter Charitable Lead Annuity Trust is a unique charitable estate planning strategy that caters to both philanthropic goals and the need for providing financial support to loved ones. It allows granters residing in Chicago to make a lasting impact on charitable causes while ensuring their assets are distributed in accordance with their wishes.The Chicago Illinois Inter Vivos Granter Charitable Lead Annuity Trust (FLAT) refers to a specific type of estate planning tool frequently used by individuals residing in Chicago, Illinois. This trust structure allows the granter to support charitable organizations while also ensuring their beneficiaries receive assets or income through an annuity. A FLAT is established during the granter's lifetime, hence the term "inter vivos." The granter transfers assets into the trust and designates a charitable organization as the lead beneficiary. The intent of the trust is to provide annual payments to the designated charitable organization for a predetermined period, typically a fixed number of years or the lifetime of one or more individuals. By creating a FLAT, the granter may simultaneously benefit charitable causes close to their heart and maintain control over the ultimate disposition of the trust assets. Upon the termination of the specified period, the remaining assets within the trust are distributed to one or more non-charitable beneficiaries, often family members or other loved ones. Different types of Chicago Illinois Inter Vivos Granter Charitable Lead Annuity Trust may include: 1. Term Charitable Lead Annuity Trust: In this type of FLAT, the charitable organization will receive annuity payments for a fixed period determined by the granter. Once this period concludes, the remaining assets will pass to the non-charitable beneficiaries. 2. Granter Retained Annuity Trust (GREAT): Although this is a similar trust structure, it differs as the granter retains the right to receive annuity payments from the trust, rather than a charitable organization. Upon the trust's termination, the remaining assets are typically transferred to non-charitable beneficiaries. 3. Charitable Remainder Trust (CRT): While not an Inter Vivos Granter FLAT, a CRT can be seen as a complementary structure. In a CRT, the charity receives the remainder of the trust assets at its termination, leaving the non-charitable beneficiaries with an income interest during the trust's existence. Overall, the Chicago Illinois Inter Vivos Granter Charitable Lead Annuity Trust is a unique charitable estate planning strategy that caters to both philanthropic goals and the need for providing financial support to loved ones. It allows granters residing in Chicago to make a lasting impact on charitable causes while ensuring their assets are distributed in accordance with their wishes.
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.
