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.
Delaware Inter Vivos Granter Charitable Lead Annuity Trust (Delaware ICCAT) is a specific type of charitable trust that allows individuals in Delaware to provide financial support to the charities of their choice while also gaining potential tax benefits. Keywords: Delaware, Inter Vivos Granter Charitable Lead Annuity Trust, charitable trust, financial support, tax benefits, charities. A Delaware ICCAT is formed when an individual, known as the granter, transfers assets to an irrevocable trust during their lifetime. This trust is designed to make annual payments to one or more charitable organizations for a predetermined period of time. At the end of the charitable term, any remaining assets in the trust can either be distributed to non-charitable beneficiaries or continue as a separate trust. There are different types of Delaware ICCAT based on the structure and terms of the trust. Here are a few variations: 1. Standard Delaware ICCAT: This is the most common type. The annuity payments made to charitable organizations are fixed and predetermined from the outset. The amount is typically a fixed percentage of the initial trust value, determined at the time of creation. 2. Pooled Income Delaware ICCAT: In this type of trust, multiple granters contribute their assets into a single trust. Income generated by the trust is then distributed to the charitable beneficiaries based on their respective shares. 3. Net Income Delaware ICCAT: Rather than a fixed annuity amount, the payments made to charitable beneficiaries are based on the trust's net income each year. The payment to the charitable organization may vary annually depending on the trust's performance. 4. Flip Delaware ICCAT: This type of trust converts from an initial annuity payment structure to a unit rust (where the distribution is a fixed percentage of the annually revalued trust assets) when certain triggering events occur. The flip mechanism provides flexibility in the trust's payment structure. Delaware ICCAT offer several benefits, including potential income tax deductions for the granter's charitable contributions, estate tax savings, and the ability to provide ongoing support to charitable causes during the granter's lifetime. It is crucial to consult with a qualified estate planning attorney or financial advisor to determine the most suitable Delaware ICCAT structure and understand the specific tax and legal implications based on individual circumstances. Remember, the appropriate structure may depend on factors such as the granter's charitable intentions, financial goals, and assets to be transferred.Delaware Inter Vivos Granter Charitable Lead Annuity Trust (Delaware ICCAT) is a specific type of charitable trust that allows individuals in Delaware to provide financial support to the charities of their choice while also gaining potential tax benefits. Keywords: Delaware, Inter Vivos Granter Charitable Lead Annuity Trust, charitable trust, financial support, tax benefits, charities. A Delaware ICCAT is formed when an individual, known as the granter, transfers assets to an irrevocable trust during their lifetime. This trust is designed to make annual payments to one or more charitable organizations for a predetermined period of time. At the end of the charitable term, any remaining assets in the trust can either be distributed to non-charitable beneficiaries or continue as a separate trust. There are different types of Delaware ICCAT based on the structure and terms of the trust. Here are a few variations: 1. Standard Delaware ICCAT: This is the most common type. The annuity payments made to charitable organizations are fixed and predetermined from the outset. The amount is typically a fixed percentage of the initial trust value, determined at the time of creation. 2. Pooled Income Delaware ICCAT: In this type of trust, multiple granters contribute their assets into a single trust. Income generated by the trust is then distributed to the charitable beneficiaries based on their respective shares. 3. Net Income Delaware ICCAT: Rather than a fixed annuity amount, the payments made to charitable beneficiaries are based on the trust's net income each year. The payment to the charitable organization may vary annually depending on the trust's performance. 4. Flip Delaware ICCAT: This type of trust converts from an initial annuity payment structure to a unit rust (where the distribution is a fixed percentage of the annually revalued trust assets) when certain triggering events occur. The flip mechanism provides flexibility in the trust's payment structure. Delaware ICCAT offer several benefits, including potential income tax deductions for the granter's charitable contributions, estate tax savings, and the ability to provide ongoing support to charitable causes during the granter's lifetime. It is crucial to consult with a qualified estate planning attorney or financial advisor to determine the most suitable Delaware ICCAT structure and understand the specific tax and legal implications based on individual circumstances. Remember, the appropriate structure may depend on factors such as the granter's charitable intentions, financial goals, and assets to be transferred.
