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.
Cuyahoga County, Ohio is home to various types of granter charitable lead annuity trusts (Class). One such type is the Cuyahoga Ohio Inter Vivos Granter Charitable Lead Annuity Trust, which offers unique benefits and opportunities for individuals looking to support charitable causes while maximizing their financial planning strategies. A Cuyahoga Ohio Inter Vivos Granter Charitable Lead Annuity Trust is a legal arrangement established by a granter (also known as the creator) to provide an income stream to one or more charitable organizations for a specified period. The granter contributes assets into the trust, which then generate regular annuity payments to the chosen charity/IES. At the end of the predetermined period, the remaining assets in the trust are transferred to the granter's designated beneficiaries. One key advantage of the Cuyahoga Ohio Inter Vivos Granter Charitable Lead Annuity Trust is its ability to provide tax benefits to the granter. The income paid to the charitable organization is typically tax-deductible, offering potential reduction in the granter's taxable income. Additionally, any appreciation in the trust assets during the trust's duration is excluded from the granter's estate for federal estate tax purposes. Different variations of the Cuyahoga Ohio Inter Vivos Granter Charitable Lead Annuity Trust include: 1. Standard FLAT: This is a straightforward form of the trust where the granter specifies a fixed annuity payment to the charitable organization, typically calculated as a percentage of the initial trust assets. 2. Net-Income FLAT: In this type, the annuity payment to the charitable organization is based on the trust's actual income generated each year, rather than a fixed amount. 3. Flip FLAT: A Flip FLAT combines a Charitable Remainder Annuity Trust (CAT) and a FLAT. In the initial period, the trust functions as a CAT where the granter or the granter's designated beneficiaries receive annuity payments. After a specified event occurs (e.g., a certain asset value is reached), the trust 'flips' and becomes a FLAT, with the remaining assets passing to the charitable organization. 4. Granter Retained Annuity Trust (GREAT) with Charitable Lead Annuity Trust: This structure incorporates a GREAT with a FLAT. The GREAT provides the granter with annuity payments for a fixed period, after which the remaining assets pass into a FLAT to benefit the charitable organizations. These variations of the Cuyahoga Ohio Inter Vivos Granter Charitable Lead Annuity Trust allow individuals to tailor their estate planning to align with their charitable goals, financial objectives, and tax strategies. By providing ongoing support to charitable causes while potentially reducing tax liabilities, these trusts serve as effective tools for philanthropic giving and wealth management.Cuyahoga County, Ohio is home to various types of granter charitable lead annuity trusts (Class). One such type is the Cuyahoga Ohio Inter Vivos Granter Charitable Lead Annuity Trust, which offers unique benefits and opportunities for individuals looking to support charitable causes while maximizing their financial planning strategies. A Cuyahoga Ohio Inter Vivos Granter Charitable Lead Annuity Trust is a legal arrangement established by a granter (also known as the creator) to provide an income stream to one or more charitable organizations for a specified period. The granter contributes assets into the trust, which then generate regular annuity payments to the chosen charity/IES. At the end of the predetermined period, the remaining assets in the trust are transferred to the granter's designated beneficiaries. One key advantage of the Cuyahoga Ohio Inter Vivos Granter Charitable Lead Annuity Trust is its ability to provide tax benefits to the granter. The income paid to the charitable organization is typically tax-deductible, offering potential reduction in the granter's taxable income. Additionally, any appreciation in the trust assets during the trust's duration is excluded from the granter's estate for federal estate tax purposes. Different variations of the Cuyahoga Ohio Inter Vivos Granter Charitable Lead Annuity Trust include: 1. Standard FLAT: This is a straightforward form of the trust where the granter specifies a fixed annuity payment to the charitable organization, typically calculated as a percentage of the initial trust assets. 2. Net-Income FLAT: In this type, the annuity payment to the charitable organization is based on the trust's actual income generated each year, rather than a fixed amount. 3. Flip FLAT: A Flip FLAT combines a Charitable Remainder Annuity Trust (CAT) and a FLAT. In the initial period, the trust functions as a CAT where the granter or the granter's designated beneficiaries receive annuity payments. After a specified event occurs (e.g., a certain asset value is reached), the trust 'flips' and becomes a FLAT, with the remaining assets passing to the charitable organization. 4. Granter Retained Annuity Trust (GREAT) with Charitable Lead Annuity Trust: This structure incorporates a GREAT with a FLAT. The GREAT provides the granter with annuity payments for a fixed period, after which the remaining assets pass into a FLAT to benefit the charitable organizations. These variations of the Cuyahoga Ohio Inter Vivos Granter Charitable Lead Annuity Trust allow individuals to tailor their estate planning to align with their charitable goals, financial objectives, and tax strategies. By providing ongoing support to charitable causes while potentially reducing tax liabilities, these trusts serve as effective tools for philanthropic giving and wealth management.
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.
