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 Tennessee Inter Vivos Granter Charitable Lead Annuity Trust (TN WILDCAT) is a type of trust that allows individuals to make charitable donations while retaining control of their assets during their lifetime. This trust provides a way for individuals to support charitable causes while potentially reducing their overall estate and gift taxes. The TN WILDCAT is an inter vivos (living) trust, which means it is created during the lifetime of the granter (the person establishing the trust) and takes effect immediately. It is specifically designed to benefit both charitable organizations and designated non-charitable beneficiaries, such as family members or other individuals. Key features of the TN WILDCAT include: 1. Granter: The person who establishes the trust and contributes assets to it is known as the granter. The granter retains control over the assets and can choose the charitable organization(s) that will receive the income from the trust. 2. Charitable Lead Annuity: The trust is structured as a charitable lead annuity trust, which means that a fixed annual payment is made to the charitable organization(s) for a specified period. This payment is either a fixed percentage of the initial trust value or a fixed dollar amount. 3. Income Stream: The charitable lead annuity payment is made from the income generated by the trust's assets. These assets are typically investments, such as stocks, bonds, or real estate, which generate income throughout the life of the trust. 4. Trust Term: The length of time during which the charitable organization(s) receive the annuity payments is determined by the granter. This period can be for a specific number of years or for the lifetime of the granter. 5. Non-charitable Beneficiaries: After the trust term expires or when the granter passes away, the remaining assets in the trust pass on to the designated non-charitable beneficiaries. The granter can choose one or multiple beneficiaries who will benefit from the trust's assets. Types of TN Wildcats: 1. Charitable Remainder Unit rust (CUT): This type of TN WILDCAT provides a variable annuity payment to the charitable organization(s) based on the value of the trust's assets. The annuity payment is recalculated annually, adjusting with the fluctuating value of the trust. 2. Charitable Remainder Annuity Trust (CAT): In contrast to the CUT, the CAT provides a fixed annuity payment to the charitable organization(s) throughout the trust term. This payment does not change regardless of the trust's asset value. Creating a Tennessee Inter Vivos Granter Charitable Lead Annuity Trust offers individuals an opportunity to support charitable causes they care about while also enjoying potential tax benefits. It is beneficial for those who wish to make a lasting impact and protect their assets for their loved ones. Consulting with a knowledgeable estate planning attorney or financial advisor can help individuals navigate the specifics and various options available within TN Wildcats and ensure their philanthropic goals are achieved.The Tennessee Inter Vivos Granter Charitable Lead Annuity Trust (TN WILDCAT) is a type of trust that allows individuals to make charitable donations while retaining control of their assets during their lifetime. This trust provides a way for individuals to support charitable causes while potentially reducing their overall estate and gift taxes. The TN WILDCAT is an inter vivos (living) trust, which means it is created during the lifetime of the granter (the person establishing the trust) and takes effect immediately. It is specifically designed to benefit both charitable organizations and designated non-charitable beneficiaries, such as family members or other individuals. Key features of the TN WILDCAT include: 1. Granter: The person who establishes the trust and contributes assets to it is known as the granter. The granter retains control over the assets and can choose the charitable organization(s) that will receive the income from the trust. 2. Charitable Lead Annuity: The trust is structured as a charitable lead annuity trust, which means that a fixed annual payment is made to the charitable organization(s) for a specified period. This payment is either a fixed percentage of the initial trust value or a fixed dollar amount. 3. Income Stream: The charitable lead annuity payment is made from the income generated by the trust's assets. These assets are typically investments, such as stocks, bonds, or real estate, which generate income throughout the life of the trust. 4. Trust Term: The length of time during which the charitable organization(s) receive the annuity payments is determined by the granter. This period can be for a specific number of years or for the lifetime of the granter. 5. Non-charitable Beneficiaries: After the trust term expires or when the granter passes away, the remaining assets in the trust pass on to the designated non-charitable beneficiaries. The granter can choose one or multiple beneficiaries who will benefit from the trust's assets. Types of TN Wildcats: 1. Charitable Remainder Unit rust (CUT): This type of TN WILDCAT provides a variable annuity payment to the charitable organization(s) based on the value of the trust's assets. The annuity payment is recalculated annually, adjusting with the fluctuating value of the trust. 2. Charitable Remainder Annuity Trust (CAT): In contrast to the CUT, the CAT provides a fixed annuity payment to the charitable organization(s) throughout the trust term. This payment does not change regardless of the trust's asset value. Creating a Tennessee Inter Vivos Granter Charitable Lead Annuity Trust offers individuals an opportunity to support charitable causes they care about while also enjoying potential tax benefits. It is beneficial for those who wish to make a lasting impact and protect their assets for their loved ones. Consulting with a knowledgeable estate planning attorney or financial advisor can help individuals navigate the specifics and various options available within TN Wildcats and ensure their philanthropic goals are achieved.
