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.
Fairfax, Virginia is known for its thriving community and a variety of legal and financial services offered to residents and businesses. One such financial tool that individuals may consider is the Fairfax Virginia Inter Vivos Granter Charitable Lead Annuity Trust (FLAT). This trust is an estate planning mechanism primarily used to support charitable causes while still providing financial control and benefits during the granter's lifetime. The Fairfax Virginia Inter Vivos Granter Charitable Lead Annuity Trust is designed to provide an annual stream of income to a chosen charitable organization for a specified period of time. The granter creates the trust and transfers assets into it, with the income generated from these assets going directly to the designated charitable organization. The granter may choose to support a particular cause or multiple charitable organizations through this trust. The Inter Vivos Granter Charitable Lead Annuity Trust is an effective estate planning tool as it allows the granter to reduce their taxable estate while supporting charitable endeavors. By transferring assets into the trust, the granter can potentially reduce their estate tax burden while ensuring that their chosen charitable organization receives ongoing financial support. There are a few variations or subtypes of the Fairfax Virginia Inter Vivos Granter Charitable Lead Annuity Trust worth mentioning. These include: 1. Non-grantor FLAT: In this variation, the granter does not retain any control or receive any financial benefit during the term of the trust. Once the trust term ends, the remaining assets are passed on to non-charitable beneficiaries, usually family members. 2. Charitable remainder FLAT: This subtype differs from the traditional FLAT as it provides income to non-charitable beneficiaries during the trust term, with the remaining assets passing to charity at the end of the trust term. 3. Charitable lead uni-trust (CLUB): The CLUB is another similar charitable trust, but instead of annuity payments, it disburses a fixed percentage of the trust assets' fair market value to the charitable beneficiary each year. It is crucial to consult with a qualified estate planning attorney or financial advisor when considering a Fairfax Virginia Inter Vivos Granter Charitable Lead Annuity Trust. They can help assess individual circumstances and determine if this trust type is suitable to accomplish specific goals related to charitable giving and estate planning.Fairfax, Virginia is known for its thriving community and a variety of legal and financial services offered to residents and businesses. One such financial tool that individuals may consider is the Fairfax Virginia Inter Vivos Granter Charitable Lead Annuity Trust (FLAT). This trust is an estate planning mechanism primarily used to support charitable causes while still providing financial control and benefits during the granter's lifetime. The Fairfax Virginia Inter Vivos Granter Charitable Lead Annuity Trust is designed to provide an annual stream of income to a chosen charitable organization for a specified period of time. The granter creates the trust and transfers assets into it, with the income generated from these assets going directly to the designated charitable organization. The granter may choose to support a particular cause or multiple charitable organizations through this trust. The Inter Vivos Granter Charitable Lead Annuity Trust is an effective estate planning tool as it allows the granter to reduce their taxable estate while supporting charitable endeavors. By transferring assets into the trust, the granter can potentially reduce their estate tax burden while ensuring that their chosen charitable organization receives ongoing financial support. There are a few variations or subtypes of the Fairfax Virginia Inter Vivos Granter Charitable Lead Annuity Trust worth mentioning. These include: 1. Non-grantor FLAT: In this variation, the granter does not retain any control or receive any financial benefit during the term of the trust. Once the trust term ends, the remaining assets are passed on to non-charitable beneficiaries, usually family members. 2. Charitable remainder FLAT: This subtype differs from the traditional FLAT as it provides income to non-charitable beneficiaries during the trust term, with the remaining assets passing to charity at the end of the trust term. 3. Charitable lead uni-trust (CLUB): The CLUB is another similar charitable trust, but instead of annuity payments, it disburses a fixed percentage of the trust assets' fair market value to the charitable beneficiary each year. It is crucial to consult with a qualified estate planning attorney or financial advisor when considering a Fairfax Virginia Inter Vivos Granter Charitable Lead Annuity Trust. They can help assess individual circumstances and determine if this trust type is suitable to accomplish specific goals related to charitable giving and estate planning.
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.
