Washington Testamentary Provisions for Charitable Remainder Annuity Trust for Term of Years is a legal arrangement in which a designated charitable organization receives a fixed annual income from a trust for a specified period of time. This estate planning tool allows individuals to support charities they care about while receiving certain tax benefits. The main purpose of Washington Testamentary Provisions for Charitable Remainder Annuity Trust for Term of Years is to provide financial support to charitable organizations while also offering significant tax advantages to the granter. Under this trust, the granter transfers assets to the trust, and the trust pays a fixed annuity amount to one or more named charitable beneficiaries for a specific number of years or until the death of a named individual. There are several types of Washington Testamentary Provisions for Charitable Remainder Annuity Trust for Term of Years that individuals can choose from based on their specific goals and preferences: 1. Charitable Remainder Annuity Trust (CAT): This type of trust provides a fixed annuity payment to charitable organizations over a set term of years. The annuity amount remains constant throughout the trust term, regardless of changes in the trust's assets. 2. Charitable Remainder Unit rust (CUT): Unlike a CAT, a CUT pays a fixed percentage of the trust's net fair market value to charitable beneficiaries on an annual basis. As the trust's value fluctuates, the annual payment adjusts accordingly. 3. Flip Charitable Remainder Unit rust: This trust starts as a CAT, providing a fixed annuity payment to non-charitable beneficiaries initially. However, upon the occurrence of a triggering event, such as the sale of an asset or a predetermined date, the trust converts to a CUT and begins paying a fixed percentage of the trust's value to charitable beneficiaries. 4. Net Income Charitable Remainder Unit rust: This trust allows the granter to receive either the least of the trust's net income or a fixed percentage of the trust's assets annually. If the trust's net income is less than the fixed percentage, the shortfall carries forward to subsequent years. Washington Testamentary Provisions for Charitable Remainder Annuity Trust for Term of Years offers various benefits, including income tax deductions for the value of the charitable remainder interest, avoidance of capital gains tax upon transfer of appreciated assets, and potential estate tax savings. It is crucial to consult with an estate planning attorney or financial advisor to discuss the specific implications and opportunities provided by these provisions.