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.
The Missouri Inter Vivos Granter Charitable Lead Annuity Trust (IIT) is a legal tool utilized by individuals with philanthropic goals to support charitable causes in the state of Missouri. This comprehensive charitable planning option offers several variations to suit the specific needs of the granter. Let's explore the different types of Missouri Inter Vivos Granter Charitable Lead Annuity Trusts: 1. Traditional Missouri Inter Vivos Granter Charitable Lead Annuity Trust: This type of IIT allows the granter to transfer assets into the trust while retaining control and receiving income through fixed annual payments, known as annuity payments. The trustee, appointed by the granter, distributes these payments to one or more charitable organizations specified by the granter throughout the predetermined term. 2. Missouri Inter Vivos Granter Charitable Lead Annuity Trust with Flip Provisions: This IIT includes a unique feature known as "flip provisions." The granter has the option to convert the trust into a different type of trust, such as a Missouri Inter Vivos Granter Charitable Remainder Annuity Trust (CAT), after a specified event occurs. This provides flexibility to adjust the trust structure and maximize both charitable giving and potential tax benefits. 3. Missouri Inter Vivos Granter Charitable Lead Annuity Trust with Granter Retained Interest: In this IIT, the granter retains an interest in the trust assets for a specified period, which can be beneficial for estate tax planning. The trustee distributes the remaining income from the trust to charitable organizations designated by the granter. After the retained interest period, the trust assets can be transferred to beneficiaries, typically family members, with potential estate tax advantages. 4. Missouri Inter Vivos Granter Charitable Lead Annuity Trust with Granter Retained Annuity Payments: This IIT variation allows the granter to receive income from the trust as fixed annuity payments for a predetermined period. After this period, the remaining trust assets transfer to the charitable organizations specified by the granter. This arrangement provides the granter with a consistent income stream while supporting charitable causes. It is important to consult with legal and financial professionals well-versed in estate planning and charitable giving when considering establishing a Missouri Inter Vivos Granter Charitable Lead Annuity Trust. These experts can guide individuals through the various options based on their specific goals and circumstances, ensuring the greatest impact for charitable giving and potential tax advantages.
