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.
New York Inter Vivos Granter Charitable Lead Annuity Trust, also known as FLAT, is a type of charitable lead trust established by an individual in New York. Class are effective estate planning tools that allow donors to benefit both their preferred charitable organizations and their family members while reducing estate tax liability. In a New York Inter Vivos Granter Charitable Lead Annuity Trust, the granter (person setting up the trust) transfers assets to the trust and determines the specific amount of income that will be paid annually to the chosen charitable beneficiary for a predetermined period. This fixed annuity payment is usually a percentage of the initial trust assets or a fixed dollar amount. The charitable beneficiary then receives these annual income payments. The duration of the charitable payments can vary, and there are different types of New York Inter Vivos Granter Charitable Lead Annuity Trusts available, including: 1. Term FLAT: In this type of trust, the charitable beneficiary receives annuity payments for a fixed number of years. At the end of the term, the remaining trust assets, if any, are typically transferred back to the granter or other non-charitable beneficiaries, such as family members. 2. Flip FLAT: A Flip FLAT begins as a charitable lead annuity trust but can "flip" to become a non-charitable remainder trust (CRT) if specific triggering events occur. This allows the granter to support charities initially and provide for family members later on, maximizing tax benefits. 3. Net Income FLAT: Unlike a traditional FLAT, the net income FLAT distributes only the annual net income generated by the trust assets to the charitable beneficiary. If the trust assets' income exceeds the stated payment, the excess remains in the trust, potentially benefiting family members or future charitable beneficiaries. In addition to the specific types mentioned above, each New York Inter Vivos Granter Charitable Lead Annuity Trust can be customized to meet the granter's specific charitable intentions and financial goals. It is crucial to consult with an experienced estate planning attorney or financial advisor to ensure compliance with New York state laws and to maximize the benefits of these trusts.New York Inter Vivos Granter Charitable Lead Annuity Trust, also known as FLAT, is a type of charitable lead trust established by an individual in New York. Class are effective estate planning tools that allow donors to benefit both their preferred charitable organizations and their family members while reducing estate tax liability. In a New York Inter Vivos Granter Charitable Lead Annuity Trust, the granter (person setting up the trust) transfers assets to the trust and determines the specific amount of income that will be paid annually to the chosen charitable beneficiary for a predetermined period. This fixed annuity payment is usually a percentage of the initial trust assets or a fixed dollar amount. The charitable beneficiary then receives these annual income payments. The duration of the charitable payments can vary, and there are different types of New York Inter Vivos Granter Charitable Lead Annuity Trusts available, including: 1. Term FLAT: In this type of trust, the charitable beneficiary receives annuity payments for a fixed number of years. At the end of the term, the remaining trust assets, if any, are typically transferred back to the granter or other non-charitable beneficiaries, such as family members. 2. Flip FLAT: A Flip FLAT begins as a charitable lead annuity trust but can "flip" to become a non-charitable remainder trust (CRT) if specific triggering events occur. This allows the granter to support charities initially and provide for family members later on, maximizing tax benefits. 3. Net Income FLAT: Unlike a traditional FLAT, the net income FLAT distributes only the annual net income generated by the trust assets to the charitable beneficiary. If the trust assets' income exceeds the stated payment, the excess remains in the trust, potentially benefiting family members or future charitable beneficiaries. In addition to the specific types mentioned above, each New York Inter Vivos Granter Charitable Lead Annuity Trust can be customized to meet the granter's specific charitable intentions and financial goals. It is crucial to consult with an experienced estate planning attorney or financial advisor to ensure compliance with New York state laws and to maximize the benefits of these trusts.
