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.
Oregon Inter Vivos Granter Charitable Lead Annuity Trust (IIT) is a type of trust that allows individuals in Oregon to support charitable organizations while potentially reducing estate tax liability. This trust type operates by transferring assets to a trust for a predetermined period of time, during which an annuity payment is made to a charitable organization. At the end of the specified term, the remaining assets are typically distributed back to the granter or designated beneficiaries. Keywords: Oregon, Inter Vivos Granter Charitable Lead Annuity Trust, IIT, charitable organizations, estate tax liability, assets, annuity payment, specified term, granter, beneficiaries. There are a few different types of Oregon Inter Vivos Granter Charitable Lead Annuity Trusts, each with its own unique characteristics: 1. Non-Grantor Charitable Lead Annuity Trust: In this type of trust, the granter does not retain any interest in the trust assets. The annuity payment is made from the trust to the charitable organization, and at the end of the term, the remaining assets are distributed to non-charitable beneficiaries, such as family members or other designated individuals. 2. Granter Retained Charitable Lead Annuity Trust: In this variation, the granter retains an interest in the trust assets, allowing them to receive an annuity payment during the term of the trust. At the end of the term, the remaining assets are distributed to charitable beneficiaries, not the granter's non-charitable beneficiaries. 3. Testamentary Charitable Lead Annuity Trust: This type of trust is created through the granter's will and takes effect upon their passing. The trust assets are transferred after the granter's death, and the annuity payment is made to the charitable organization during the specified term. At the end of the term, the remaining assets are typically distributed to non-charitable beneficiaries. 4. Charitable Lead Unit rust: Unlike the annuity trust, a charitable lead unit rust distributes a fixed percentage of the trust assets to the charitable organization annually. The annuity payments fluctuate based on the value of the trust assets, recalculated each year. At the end of the term, the remaining assets may be returned to the granter or designated beneficiaries. By utilizing an Oregon Inter Vivos Granter Charitable Lead Annuity Trust, individuals can support causes they care about while potentially benefiting from tax advantages. It is crucial to consult with legal and financial professionals to determine the most suitable trust type and structure according to personal goals and circumstances.
