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 Colorado Inter Vivos Granter Charitable Lead Annuity Trust (FLAT) is a specific type of trust established during the lifetime of the granter (a person who creates the trust). It is designed to provide both philanthropic benefits and potential estate tax advantages. The primary goal of a Colorado Inter Vivos Granter FLAT is to generate income for a charitable organization for a specific period of time, after which the remaining assets of the trust pass to the beneficiaries named by the granter. This type of trust allows individuals to support their preferred charitable causes while potentially reducing their taxable estate. Some relevant keywords associated with a Colorado Inter Vivos Granter FLAT include: 1. Inter Vivos Trust: This denotes that the trust is established during the granter's lifetime rather than being created through a will. 2. Charitable Lead Trust: This describes the primary objective of the trust, which is to provide income to a charitable organization for a designated period. 3. Annuity Trust: This indicates that the trust pays a fixed income (annuity) to the charitable organization, typically a percentage of the initial contributed assets. 4. Granter Trust: The trust is considered a granter trust for income tax purposes, meaning the granter is taxed on the trust's income. 5. Estate Tax Planning: The purpose of establishing a Colorado Inter Vivos Granter FLAT is often to reduce potential estate taxes by removing assets from the individual's taxable estate. There are various types of Class, each with its own specific characteristics and benefits. These include: 1. Charitable Lead Annuity Trust (FLAT): This type of FLAT pays a fixed amount as an annuity to the charitable organization for the specified period. 2. Charitable Lead Unit rust (CLUB): Unlike the fixed annuity payment in a FLAT, a CLUB pays a variable amount each year based on a fixed percentage of the trust's value. This allows the trust to potentially keep pace with inflation or changes in the investment market. 3. Non-Grantor Charitable Lead Annuity Trust (NGC LAT): In contrast to a Granter FLAT, an NGC LAT is designed not to be a granter trust and has different tax implications. In conclusion, a Colorado Inter Vivos Granter Charitable Lead Annuity Trust is a specific form of trust that allows individuals to provide income to charitable organizations for a defined period while potentially reducing their taxable estate. It is a powerful estate planning tool that combines philanthropy with estate tax benefits.A Colorado Inter Vivos Granter Charitable Lead Annuity Trust (FLAT) is a specific type of trust established during the lifetime of the granter (a person who creates the trust). It is designed to provide both philanthropic benefits and potential estate tax advantages. The primary goal of a Colorado Inter Vivos Granter FLAT is to generate income for a charitable organization for a specific period of time, after which the remaining assets of the trust pass to the beneficiaries named by the granter. This type of trust allows individuals to support their preferred charitable causes while potentially reducing their taxable estate. Some relevant keywords associated with a Colorado Inter Vivos Granter FLAT include: 1. Inter Vivos Trust: This denotes that the trust is established during the granter's lifetime rather than being created through a will. 2. Charitable Lead Trust: This describes the primary objective of the trust, which is to provide income to a charitable organization for a designated period. 3. Annuity Trust: This indicates that the trust pays a fixed income (annuity) to the charitable organization, typically a percentage of the initial contributed assets. 4. Granter Trust: The trust is considered a granter trust for income tax purposes, meaning the granter is taxed on the trust's income. 5. Estate Tax Planning: The purpose of establishing a Colorado Inter Vivos Granter FLAT is often to reduce potential estate taxes by removing assets from the individual's taxable estate. There are various types of Class, each with its own specific characteristics and benefits. These include: 1. Charitable Lead Annuity Trust (FLAT): This type of FLAT pays a fixed amount as an annuity to the charitable organization for the specified period. 2. Charitable Lead Unit rust (CLUB): Unlike the fixed annuity payment in a FLAT, a CLUB pays a variable amount each year based on a fixed percentage of the trust's value. This allows the trust to potentially keep pace with inflation or changes in the investment market. 3. Non-Grantor Charitable Lead Annuity Trust (NGC LAT): In contrast to a Granter FLAT, an NGC LAT is designed not to be a granter trust and has different tax implications. In conclusion, a Colorado Inter Vivos Granter Charitable Lead Annuity Trust is a specific form of trust that allows individuals to provide income to charitable organizations for a defined period while potentially reducing their taxable estate. It is a powerful estate planning tool that combines philanthropy with estate tax benefits.
