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 Maricopa Arizona Inter Vivos Granter Charitable Lead Annuity Trust (FLAT) is a legal instrument used for charitable giving while also providing potential estate planning advantages for individuals residing in Maricopa, Arizona. This trust allows granters to transfer assets to a trust, generating an income stream for a specified charitable organization for a predetermined period of time, after which the remaining assets are distributed to non-charitable beneficiaries. The Maricopa Arizona Inter Vivos Granter FLAT offers several benefits to granters, including potential reduction in estate taxes, preserving wealth for future generations, and fulfilling philanthropic goals. By establishing this trust, individuals can support a cause they care about while still ensuring their loved ones are provided for. There can be variations of the Maricopa Arizona Inter Vivos Granter FLAT, such as: 1. Charitable Lead Annuity Trust (FLAT): This type of trust provides a fixed annual payment to the designated charitable organization for the specified term, determined at the trust's creation. Once the term ends, the remaining assets are distributed to non-charitable beneficiaries, such as family members or other designated individuals. 2. Charitable Lead Unit rust (CLUB): Unlike the FLAT, the CLUB distributes a fixed percentage of the trust's assets to the charitable organization each year. The amount fluctuates annually based on the trust's value, making it ideal for individuals who want their charitable contributions to adjust with market conditions. Once the trust term concludes, the remaining assets are distributed to non-charitable beneficiaries. 3. Charitable Lead Annuity Trust with Flip Provisions: This trust structure allows for a change in either the charitable or non-charitable beneficiaries during or after the specified term. Granters can choose to alter the beneficiaries based on changing circumstances or personal preferences. 4. Charitable Lead Annuity Trust with Granter Retained Annuity Trust (GREAT) Provisions: This combination trust allows granters to pass assets to a charitable organization for a predetermined period while retaining an income stream from the trust for a set number of years. After the trust term, both the remaining assets and retained income pass to non-charitable beneficiaries. 5. Granter Charitable Lead Annuity Trust (GREATCOAT): With this trust, granters have the opportunity to receive an income tax deduction at the time of contribution while deferring the commencement of charitable payments until a later date. This structure can be advantageous for granters seeking immediate tax benefits and future charitable contributions. In conclusion, the Maricopa Arizona Inter Vivos Granter Charitable Lead Annuity Trust is a versatile estate planning tool that allows individuals to support charitable causes and provide for their beneficiaries in a tax-efficient manner. It offers various options, including different types of trusts, to cater to the specific needs and objectives of the granter.The Maricopa Arizona Inter Vivos Granter Charitable Lead Annuity Trust (FLAT) is a legal instrument used for charitable giving while also providing potential estate planning advantages for individuals residing in Maricopa, Arizona. This trust allows granters to transfer assets to a trust, generating an income stream for a specified charitable organization for a predetermined period of time, after which the remaining assets are distributed to non-charitable beneficiaries. The Maricopa Arizona Inter Vivos Granter FLAT offers several benefits to granters, including potential reduction in estate taxes, preserving wealth for future generations, and fulfilling philanthropic goals. By establishing this trust, individuals can support a cause they care about while still ensuring their loved ones are provided for. There can be variations of the Maricopa Arizona Inter Vivos Granter FLAT, such as: 1. Charitable Lead Annuity Trust (FLAT): This type of trust provides a fixed annual payment to the designated charitable organization for the specified term, determined at the trust's creation. Once the term ends, the remaining assets are distributed to non-charitable beneficiaries, such as family members or other designated individuals. 2. Charitable Lead Unit rust (CLUB): Unlike the FLAT, the CLUB distributes a fixed percentage of the trust's assets to the charitable organization each year. The amount fluctuates annually based on the trust's value, making it ideal for individuals who want their charitable contributions to adjust with market conditions. Once the trust term concludes, the remaining assets are distributed to non-charitable beneficiaries. 3. Charitable Lead Annuity Trust with Flip Provisions: This trust structure allows for a change in either the charitable or non-charitable beneficiaries during or after the specified term. Granters can choose to alter the beneficiaries based on changing circumstances or personal preferences. 4. Charitable Lead Annuity Trust with Granter Retained Annuity Trust (GREAT) Provisions: This combination trust allows granters to pass assets to a charitable organization for a predetermined period while retaining an income stream from the trust for a set number of years. After the trust term, both the remaining assets and retained income pass to non-charitable beneficiaries. 5. Granter Charitable Lead Annuity Trust (GREATCOAT): With this trust, granters have the opportunity to receive an income tax deduction at the time of contribution while deferring the commencement of charitable payments until a later date. This structure can be advantageous for granters seeking immediate tax benefits and future charitable contributions. In conclusion, the Maricopa Arizona Inter Vivos Granter Charitable Lead Annuity Trust is a versatile estate planning tool that allows individuals to support charitable causes and provide for their beneficiaries in a tax-efficient manner. It offers various options, including different types of trusts, to cater to the specific needs and objectives of the granter.
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.
