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 New Mexico Inter Vivos Granter Charitable Lead Annuity Trust (NM IGC LAT) is a specialized legal tool used for estate planning and charitable giving in the state of New Mexico. It allows individuals to support charitable causes while also potentially reducing estate taxes and providing for beneficiaries. The NM IGC LAT is a type of trust established during the granter's lifetime (hence "inter vivos") and is "granter" in nature, meaning the granter retains control and ownership of the trust assets for the specified term. Keywords: New Mexico, Inter Vivos Granter Charitable Lead Annuity Trust, estate planning, charitable giving, estate taxes, beneficiaries, trust assets. Types of New Mexico Inter Vivos Granter Charitable Lead Annuity Trusts: 1. Charitable Lead Annuity Trust (FLAT): A specific type of NM IGC LAT where a fixed annuity payment is made to charitable organizations for a predetermined term, after which the remaining trust assets are distributed to non-charitable beneficiaries. 2. Charitable Lead Unit rust (CLUB): Another variant of NM IGC LAT, the CLUB distributes a fixed percentage of the trust assets' annual value to charity. This means that as the value of the trust appreciates or declines, the charitable payment fluctuates as well. Once the predetermined term ends, the remaining assets are distributed to non-charitable beneficiaries. 3. Charitable Lead Annuity Trust with "Flip" Provision: This type of NM IGC LAT includes a "flip" provision, which allows the trust to convert from a granter trust to a non-grantor trust in a future event, such as the death of the granter or a specified date. This provision may have potential estate tax benefits as the trust assets would then be excluded from the granter's estate. 4. Charitable Lead Annuity Trust with Grantee Clause: In this version of the NM IGC LAT, the granter designates a specific charitable organization as the "grantee." The annuity payments are made to this designated charity for the determined term, and the remaining assets are then distributed to non-charitable beneficiaries. These various types of NM Class provide individuals with options to structure their charitable giving while maximizing tax benefits and leaving a lasting impact on the causes they support.The New Mexico Inter Vivos Granter Charitable Lead Annuity Trust (NM IGC LAT) is a specialized legal tool used for estate planning and charitable giving in the state of New Mexico. It allows individuals to support charitable causes while also potentially reducing estate taxes and providing for beneficiaries. The NM IGC LAT is a type of trust established during the granter's lifetime (hence "inter vivos") and is "granter" in nature, meaning the granter retains control and ownership of the trust assets for the specified term. Keywords: New Mexico, Inter Vivos Granter Charitable Lead Annuity Trust, estate planning, charitable giving, estate taxes, beneficiaries, trust assets. Types of New Mexico Inter Vivos Granter Charitable Lead Annuity Trusts: 1. Charitable Lead Annuity Trust (FLAT): A specific type of NM IGC LAT where a fixed annuity payment is made to charitable organizations for a predetermined term, after which the remaining trust assets are distributed to non-charitable beneficiaries. 2. Charitable Lead Unit rust (CLUB): Another variant of NM IGC LAT, the CLUB distributes a fixed percentage of the trust assets' annual value to charity. This means that as the value of the trust appreciates or declines, the charitable payment fluctuates as well. Once the predetermined term ends, the remaining assets are distributed to non-charitable beneficiaries. 3. Charitable Lead Annuity Trust with "Flip" Provision: This type of NM IGC LAT includes a "flip" provision, which allows the trust to convert from a granter trust to a non-grantor trust in a future event, such as the death of the granter or a specified date. This provision may have potential estate tax benefits as the trust assets would then be excluded from the granter's estate. 4. Charitable Lead Annuity Trust with Grantee Clause: In this version of the NM IGC LAT, the granter designates a specific charitable organization as the "grantee." The annuity payments are made to this designated charity for the determined term, and the remaining assets are then distributed to non-charitable beneficiaries. These various types of NM Class provide individuals with options to structure their charitable giving while maximizing tax benefits and leaving a lasting impact on the causes they support.
