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.
Georgia Inter Vivos Granter Charitable Lead Annuity Trust (FLAT) is a specific type of charitable trust established during the lifetime of the granter (also known as the donor or settler) in the state of Georgia. It allows individuals to make a charitable gift while also providing financial benefits for the granter and their beneficiaries. A Georgia Inter Vivos Granter Charitable Lead Annuity Trust has a fixed term and pays a fixed annual amount, referred to as an annuity, to a designated charity or charitable organization. The annuity payments are made for a specified period of time, typically between 10 and 20 years. At the end of the trust term, the remaining assets of the trust are then transferred to one or more non-charitable beneficiaries, such as family members, friends, or other designated individuals. This type of trust has several key benefits. Firstly, it allows the granter to support causes and organizations they are passionate about during their lifetime, ensuring a steady stream of financial support for the chosen charity. Secondly, the granter may be eligible for an immediate income tax deduction based on the present value of the annuity payments made to the charity. This deduction can help reduce the granter's income tax liability in the year the trust is established. Furthermore, the Georgia Inter Vivos Granter Charitable Lead Annuity Trust provides potential estate tax benefits. Since the assets of the trust ultimately pass to non-charitable beneficiaries, the taxable value of the granter's estate for estate tax purposes may be reduced. This can help preserve wealth for the next generation by minimizing estate taxes. It is important to note that there are variations of the Georgia Inter Vivos Granter Charitable Lead Annuity Trust, such as the qualified FLAT and the non-qualified FLAT. The qualified FLAT meets certain requirements set forth by the Internal Revenue Code and offers additional tax advantages. The non-qualified FLAT refers to trusts that do not meet these specific requirements but still provide charitable benefits and potential tax advantages. Overall, the Georgia Inter Vivos Granter Charitable Lead Annuity Trust presents an effective mechanism for individuals in Georgia to support charitable causes while achieving their personal financial goals and potentially reducing their tax burden. It is essential to consult with legal and financial advisors to determine eligibility, understand the tax implications, and ensure that the trust is structured properly to align with individual objectives.Georgia Inter Vivos Granter Charitable Lead Annuity Trust (FLAT) is a specific type of charitable trust established during the lifetime of the granter (also known as the donor or settler) in the state of Georgia. It allows individuals to make a charitable gift while also providing financial benefits for the granter and their beneficiaries. A Georgia Inter Vivos Granter Charitable Lead Annuity Trust has a fixed term and pays a fixed annual amount, referred to as an annuity, to a designated charity or charitable organization. The annuity payments are made for a specified period of time, typically between 10 and 20 years. At the end of the trust term, the remaining assets of the trust are then transferred to one or more non-charitable beneficiaries, such as family members, friends, or other designated individuals. This type of trust has several key benefits. Firstly, it allows the granter to support causes and organizations they are passionate about during their lifetime, ensuring a steady stream of financial support for the chosen charity. Secondly, the granter may be eligible for an immediate income tax deduction based on the present value of the annuity payments made to the charity. This deduction can help reduce the granter's income tax liability in the year the trust is established. Furthermore, the Georgia Inter Vivos Granter Charitable Lead Annuity Trust provides potential estate tax benefits. Since the assets of the trust ultimately pass to non-charitable beneficiaries, the taxable value of the granter's estate for estate tax purposes may be reduced. This can help preserve wealth for the next generation by minimizing estate taxes. It is important to note that there are variations of the Georgia Inter Vivos Granter Charitable Lead Annuity Trust, such as the qualified FLAT and the non-qualified FLAT. The qualified FLAT meets certain requirements set forth by the Internal Revenue Code and offers additional tax advantages. The non-qualified FLAT refers to trusts that do not meet these specific requirements but still provide charitable benefits and potential tax advantages. Overall, the Georgia Inter Vivos Granter Charitable Lead Annuity Trust presents an effective mechanism for individuals in Georgia to support charitable causes while achieving their personal financial goals and potentially reducing their tax burden. It is essential to consult with legal and financial advisors to determine eligibility, understand the tax implications, and ensure that the trust is structured properly to align with individual objectives.
