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.
A Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust is a type of charitable trust that is established during the granter's lifetime. It is specifically designed to support charitable organizations while allowing the granter to retain some control over the trust assets. This type of trust is an effective estate planning tool that offers numerous benefits to both the granter and the charitable organizations involved. The Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust works by making fixed annual payments from the trust's assets to the designated charitable organizations for a specified period of time. These payments can be made to one or multiple charities, and the granter retains the ability to choose the beneficiaries. The charitable organizations must be recognized under the Internal Revenue Code as qualified charities. One advantage of this trust is that it provides an opportunity for the granter to support causes or organizations they are passionate about during their lifetime. By establishing the trust, the granter can make a significant impact on these charitable organizations and potentially receive tax benefits. The fixed annual payments made by the trust are typically deductible on the granter's income tax return, reducing their taxable income. There are different types of Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trusts based on the terms and conditions set forth by the granter. They include: 1. Standard Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust: This is the basic type of trust where fixed annual payments are made to the charitable organizations for a specific period of time. Once the trust term ends, the remaining assets are usually distributed to the granter's designated beneficiaries, often family members or other loved ones. 2. Flip Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust: In this type of trust, the payment arrangement to the charitable organizations can "flip" to a different beneficiary after a specified event occurs. This event could be the sale of a business, the death of a particular individual, or any other trigger designated by the granter. 3. Non-Flip Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust: This trust structure requires the fixed annual payments to continue to the charitable organizations throughout the entire duration of the trust. After the trust term ends, the remaining assets are distributed to the granter's beneficiaries. 4. Income Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust: With this trust, the payments made to the charitable organizations are based on a fixed percentage of the trust assets' value. This means that if the trust assets appreciate in value, the annual payments to the charities will increase accordingly. Regardless of the specific type of Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust, it is important to consult with legal and financial professionals to ensure the trust is properly structured and aligned with the granter's charitable and financial goals.A Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust is a type of charitable trust that is established during the granter's lifetime. It is specifically designed to support charitable organizations while allowing the granter to retain some control over the trust assets. This type of trust is an effective estate planning tool that offers numerous benefits to both the granter and the charitable organizations involved. The Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust works by making fixed annual payments from the trust's assets to the designated charitable organizations for a specified period of time. These payments can be made to one or multiple charities, and the granter retains the ability to choose the beneficiaries. The charitable organizations must be recognized under the Internal Revenue Code as qualified charities. One advantage of this trust is that it provides an opportunity for the granter to support causes or organizations they are passionate about during their lifetime. By establishing the trust, the granter can make a significant impact on these charitable organizations and potentially receive tax benefits. The fixed annual payments made by the trust are typically deductible on the granter's income tax return, reducing their taxable income. There are different types of Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trusts based on the terms and conditions set forth by the granter. They include: 1. Standard Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust: This is the basic type of trust where fixed annual payments are made to the charitable organizations for a specific period of time. Once the trust term ends, the remaining assets are usually distributed to the granter's designated beneficiaries, often family members or other loved ones. 2. Flip Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust: In this type of trust, the payment arrangement to the charitable organizations can "flip" to a different beneficiary after a specified event occurs. This event could be the sale of a business, the death of a particular individual, or any other trigger designated by the granter. 3. Non-Flip Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust: This trust structure requires the fixed annual payments to continue to the charitable organizations throughout the entire duration of the trust. After the trust term ends, the remaining assets are distributed to the granter's beneficiaries. 4. Income Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust: With this trust, the payments made to the charitable organizations are based on a fixed percentage of the trust assets' value. This means that if the trust assets appreciate in value, the annual payments to the charities will increase accordingly. Regardless of the specific type of Lima Arizona Inter Vivos Granter Charitable Lead Annuity Trust, it is important to consult with legal and financial professionals to ensure the trust is properly structured and aligned with the granter's charitable and financial goals.
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.
