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 Franklin Ohio Inter Vivos Granter Charitable Lead Annuity Trust is a type of charitable trust established by a granter located in Franklin, Ohio. This trust functions as a philanthropic vehicle that allows the granter to provide ongoing financial support to charitable organizations while potentially reducing estate and gift taxes. The structure of the trust involves the granter transferring assets, such as stocks, real estate, or cash, into the trust. The trust then makes regular annuity payments to one or more charitable organizations over a specified period of time. At the end of this period, the remaining assets are typically distributed to non-charitable beneficiaries, such as family members or other individuals designated by the granter. There are several types of Franklin Ohio Inter Vivos Granter Charitable Lead Annuity Trusts, each with its own features and benefits: 1. Charitable Lead Annuity Trust (FLAT): This type of trust provides a fixed dollar amount or percentage of the initial trust assets to be paid as annuity payments to charitable organizations. 2. Charitable Lead Unit rust (CLUB): Unlike a FLAT, a CLUB provides annuity payments based on a fixed percentage of the net fair market value of the trust assets, subject to annual revaluation. 3. Charitable Lead Net Income Trust (CLIT): This trust pays the least of the net income generated by the trust assets or a fixed annuity amount to charitable organizations. 4. Charitable Lead Remainder Trust (CART): A CART allows the granter to designate a remainder beneficiary, who will receive the remaining assets of the trust after the charitable annuity period ends. 5. Charitable Lead Granter Retained Annuity Trust (CLARA): This trust allows the granter to retain an income interest for a specified period, during which annuity payments are made to charitable organizations. At the end of the period, the remaining assets are returned to the granter or other non-charitable beneficiaries. Ultimately, the Franklin Ohio Inter Vivos Granter Charitable Lead Annuity Trust provides an opportunity for granters to support charitable causes, receive potential tax benefits, and facilitate the efficient transfer of wealth to future generations. It is essential to consult with a qualified attorney or financial advisor to determine the most suitable type of trust and understand the legal and tax implications associated with its establishment.The Franklin Ohio Inter Vivos Granter Charitable Lead Annuity Trust is a type of charitable trust established by a granter located in Franklin, Ohio. This trust functions as a philanthropic vehicle that allows the granter to provide ongoing financial support to charitable organizations while potentially reducing estate and gift taxes. The structure of the trust involves the granter transferring assets, such as stocks, real estate, or cash, into the trust. The trust then makes regular annuity payments to one or more charitable organizations over a specified period of time. At the end of this period, the remaining assets are typically distributed to non-charitable beneficiaries, such as family members or other individuals designated by the granter. There are several types of Franklin Ohio Inter Vivos Granter Charitable Lead Annuity Trusts, each with its own features and benefits: 1. Charitable Lead Annuity Trust (FLAT): This type of trust provides a fixed dollar amount or percentage of the initial trust assets to be paid as annuity payments to charitable organizations. 2. Charitable Lead Unit rust (CLUB): Unlike a FLAT, a CLUB provides annuity payments based on a fixed percentage of the net fair market value of the trust assets, subject to annual revaluation. 3. Charitable Lead Net Income Trust (CLIT): This trust pays the least of the net income generated by the trust assets or a fixed annuity amount to charitable organizations. 4. Charitable Lead Remainder Trust (CART): A CART allows the granter to designate a remainder beneficiary, who will receive the remaining assets of the trust after the charitable annuity period ends. 5. Charitable Lead Granter Retained Annuity Trust (CLARA): This trust allows the granter to retain an income interest for a specified period, during which annuity payments are made to charitable organizations. At the end of the period, the remaining assets are returned to the granter or other non-charitable beneficiaries. Ultimately, the Franklin Ohio Inter Vivos Granter Charitable Lead Annuity Trust provides an opportunity for granters to support charitable causes, receive potential tax benefits, and facilitate the efficient transfer of wealth to future generations. It is essential to consult with a qualified attorney or financial advisor to determine the most suitable type of trust and understand the legal and tax implications associated with its establishment.
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.
