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 Montana Inter Vivos Granter Charitable Lead Annuity Trust (MT IGA FLAT) is a type of trust established in Montana that combines the benefits of charitable giving with estate planning strategies. In this trust arrangement, the granter transfers assets to the trust, which then pays an annuity to a charitable organization for a set period of time. Once the annuity period ends, the remaining trust assets are distributed to non-charitable beneficiaries, such as family members or other individuals designated by the granter. This specific type of trust is called an "Inter Vivos" trust, which means that it is created during the granter's lifetime, rather than being established through a will. By setting up the trust during their lifetime, the granter can maintain control over the assets while also taking advantage of various tax benefits. The key feature of the Montana Inter Vivos Granter Charitable Lead Annuity Trust is that it allows the granter to provide ongoing support to a charitable organization of their choice. The annuity payments made to the charity can be fixed or variable, depending on the terms of the trust. The charity receives these regular payments for a predetermined period, which is typically a specific number of years or the lifetime of one or more individuals. At the end of the annuity period, the remaining assets in the trust can be distributed to the non-charitable beneficiaries named by the granter. This can be an effective way to transfer wealth to future generations while minimizing estate taxes and potentially achieving additional tax benefits for the granter. There are different variations of the Montana Inter Vivos Granter Charitable Lead Annuity Trust, including the Charitable Lead Unit rust (MT IGA CLUB) and the Net Income with Makeup Charitable Lead Annuity Trust (MT IGA SIMCHAT). These variations differ in how the annuity payments are calculated or adjusted over time, providing flexibility for the granter to tailor the trust to their specific needs and goals. Overall, the Montana Inter Vivos Granter Charitable Lead Annuity Trusts offer a valuable planning tool for individuals who wish to support charitable causes during their lifetime while also ensuring the efficient transfer of assets to their non-charitable beneficiaries. It is important to consult with legal and financial professionals to determine if this type of trust aligns with your specific goals and circumstances.The Montana Inter Vivos Granter Charitable Lead Annuity Trust (MT IGA FLAT) is a type of trust established in Montana that combines the benefits of charitable giving with estate planning strategies. In this trust arrangement, the granter transfers assets to the trust, which then pays an annuity to a charitable organization for a set period of time. Once the annuity period ends, the remaining trust assets are distributed to non-charitable beneficiaries, such as family members or other individuals designated by the granter. This specific type of trust is called an "Inter Vivos" trust, which means that it is created during the granter's lifetime, rather than being established through a will. By setting up the trust during their lifetime, the granter can maintain control over the assets while also taking advantage of various tax benefits. The key feature of the Montana Inter Vivos Granter Charitable Lead Annuity Trust is that it allows the granter to provide ongoing support to a charitable organization of their choice. The annuity payments made to the charity can be fixed or variable, depending on the terms of the trust. The charity receives these regular payments for a predetermined period, which is typically a specific number of years or the lifetime of one or more individuals. At the end of the annuity period, the remaining assets in the trust can be distributed to the non-charitable beneficiaries named by the granter. This can be an effective way to transfer wealth to future generations while minimizing estate taxes and potentially achieving additional tax benefits for the granter. There are different variations of the Montana Inter Vivos Granter Charitable Lead Annuity Trust, including the Charitable Lead Unit rust (MT IGA CLUB) and the Net Income with Makeup Charitable Lead Annuity Trust (MT IGA SIMCHAT). These variations differ in how the annuity payments are calculated or adjusted over time, providing flexibility for the granter to tailor the trust to their specific needs and goals. Overall, the Montana Inter Vivos Granter Charitable Lead Annuity Trusts offer a valuable planning tool for individuals who wish to support charitable causes during their lifetime while also ensuring the efficient transfer of assets to their non-charitable beneficiaries. It is important to consult with legal and financial professionals to determine if this type of trust aligns with your specific goals and circumstances.
