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.
Orange California Inter Vivos Granter Charitable Lead Annuity Trust is a legal arrangement established in Orange County, California, where the granter donates property or assets to a charitable organization for a specified period. This type of trust allows the granter to support a charitable cause while receiving certain financial benefits. The primary purpose of an Inter Vivos Granter Charitable Lead Annuity Trust is to provide regular payments, known as annuity payments, to a charitable organization during the trust's term. These payments are usually made annually or at predetermined intervals. The trust document specifies the exact amount or percentage of the trust assets that will be distributed as annuity payments. This type of trust is often established for philanthropic purposes and to minimize estate and gift taxes. By transferring assets to the trust, the granter can reduce the taxable value of their estate while still maintaining control over the donated assets during their lifetime. In Orange California, there may be variations or subtypes of the Inter Vivos Granter Charitable Lead Annuity Trust tailored to specific situations or objectives. These variations may include: 1. Non-Grantor Charitable Lead Annuity Trust: In this type of trust, the granter does not retain any interest or control over the trust assets during their lifetime. It is commonly used to reduce estate taxes even further by removing the assets from the granter's taxable estate. 2. Charitable Lead Unit rust: Unlike an annuity trust, a unit rust distributes a fixed percentage of the trust assets' value each year. This type of trust is often chosen when the trust assets are expected to appreciate significantly, allowing for greater benefits to both the granter and the charitable organization over time. 3. Charitable Lead Remainder Annuity Trust: This variation involves distributing a fixed annuity payment to the charitable organization for the specified term, after which the remaining trust assets are transferred to non-charitable beneficiaries designated by the granter, such as family members or other individuals. It is important to consult with an experienced estate planning attorney or financial advisor in Orange California to determine which type of Inter Vivos Granter Charitable Lead Annuity Trust is most suitable for your specific circumstances and philanthropic goals. They can provide personalized guidance and ensure compliance with applicable laws and regulations.Orange California Inter Vivos Granter Charitable Lead Annuity Trust is a legal arrangement established in Orange County, California, where the granter donates property or assets to a charitable organization for a specified period. This type of trust allows the granter to support a charitable cause while receiving certain financial benefits. The primary purpose of an Inter Vivos Granter Charitable Lead Annuity Trust is to provide regular payments, known as annuity payments, to a charitable organization during the trust's term. These payments are usually made annually or at predetermined intervals. The trust document specifies the exact amount or percentage of the trust assets that will be distributed as annuity payments. This type of trust is often established for philanthropic purposes and to minimize estate and gift taxes. By transferring assets to the trust, the granter can reduce the taxable value of their estate while still maintaining control over the donated assets during their lifetime. In Orange California, there may be variations or subtypes of the Inter Vivos Granter Charitable Lead Annuity Trust tailored to specific situations or objectives. These variations may include: 1. Non-Grantor Charitable Lead Annuity Trust: In this type of trust, the granter does not retain any interest or control over the trust assets during their lifetime. It is commonly used to reduce estate taxes even further by removing the assets from the granter's taxable estate. 2. Charitable Lead Unit rust: Unlike an annuity trust, a unit rust distributes a fixed percentage of the trust assets' value each year. This type of trust is often chosen when the trust assets are expected to appreciate significantly, allowing for greater benefits to both the granter and the charitable organization over time. 3. Charitable Lead Remainder Annuity Trust: This variation involves distributing a fixed annuity payment to the charitable organization for the specified term, after which the remaining trust assets are transferred to non-charitable beneficiaries designated by the granter, such as family members or other individuals. It is important to consult with an experienced estate planning attorney or financial advisor in Orange California to determine which type of Inter Vivos Granter Charitable Lead Annuity Trust is most suitable for your specific circumstances and philanthropic goals. They can provide personalized guidance and ensure compliance with applicable laws and regulations.
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.
