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.
Rhode Island Inter Vivos Granter Charitable Lead Annuity Trust (RI CLT) is a type of charitable trust established by a Rhode Island granter during their lifetime. It allows the granter to benefit a charitable organization of their choice while retaining some control over the trust's assets and determining how they are distributed. Keywords: Rhode Island, Inter Vivos Granter Charitable Lead Annuity Trust, RI CLT, charitable trust, granter, lifetime, charitable organization, assets, distribution. There are two main types of Rhode Island Inter Vivos Granter Charitable Lead Annuity Trusts: 1. Charitable Lead Annuity Trust (FLAT): A FLAT is a type of RI CLT that provides a fixed annual payment, known as an annuity, to a designated charitable organization for a predetermined number of years or for the granter's lifetime. The amount of the annuity payment is determined at the time of creation and remains constant throughout the trust's term. 2. Charitable Lead Unit rust (CLUB): A CLUB is another variant of RI CLT where the annual payment to the charitable organization is calculated as a fixed percentage of the trust's value, which is reevaluated annually. This means that the trust's annual payment may fluctuate based on the performance of its assets. Both types of Rights offer various benefits for both the granter and the charitable organization. By creating a RI CLT, the granter can minimize the impact of estate taxes on their assets and provide ongoing support to their chosen charitable cause. Additionally, Rights allow granters to retain control over the distribution of trust assets and specify precisely how they should be used. It is important to consult with a professional estate planning attorney or financial advisor familiar with Rhode Island laws and regulations to determine the most suitable type of RI CLT and to ensure compliance with all legal requirements during the establishment process.Rhode Island Inter Vivos Granter Charitable Lead Annuity Trust (RI CLT) is a type of charitable trust established by a Rhode Island granter during their lifetime. It allows the granter to benefit a charitable organization of their choice while retaining some control over the trust's assets and determining how they are distributed. Keywords: Rhode Island, Inter Vivos Granter Charitable Lead Annuity Trust, RI CLT, charitable trust, granter, lifetime, charitable organization, assets, distribution. There are two main types of Rhode Island Inter Vivos Granter Charitable Lead Annuity Trusts: 1. Charitable Lead Annuity Trust (FLAT): A FLAT is a type of RI CLT that provides a fixed annual payment, known as an annuity, to a designated charitable organization for a predetermined number of years or for the granter's lifetime. The amount of the annuity payment is determined at the time of creation and remains constant throughout the trust's term. 2. Charitable Lead Unit rust (CLUB): A CLUB is another variant of RI CLT where the annual payment to the charitable organization is calculated as a fixed percentage of the trust's value, which is reevaluated annually. This means that the trust's annual payment may fluctuate based on the performance of its assets. Both types of Rights offer various benefits for both the granter and the charitable organization. By creating a RI CLT, the granter can minimize the impact of estate taxes on their assets and provide ongoing support to their chosen charitable cause. Additionally, Rights allow granters to retain control over the distribution of trust assets and specify precisely how they should be used. It is important to consult with a professional estate planning attorney or financial advisor familiar with Rhode Island laws and regulations to determine the most suitable type of RI CLT and to ensure compliance with all legal requirements during the establishment process.
