Pima Arizona Charitable Remainder Inter Vivos Annuity Trust

• Category: Trusts - Living Trusts
• State: Multi-State
• County: Pima
• Control #: US-00615BG
• Format: Word; Rich Text

Description

The following form is a sample of a charitable remainder inter vivos annuity trust. The Lima Arizona Charitable Remainder Inter Vivos Annuity Trust is a type of charitable trust that allows the donor to make a substantial gift to a charitable organization while still retaining an income stream from the assets they have donated. This trust is established during the donor's lifetime (inter vivos) and provides a fixed annuity payment to the donor or a designated beneficiary for a specific period, usually for their lifetime or a certain number of years. The Lima Arizona Charitable Remainder Inter Vivos Annuity Trust offers certain tax advantages to the donor, as they can claim an income tax deduction for the present value of the charitable remainder interest at the time of the initial donation. Additionally, any appreciation in the value of the assets in the trust is exempt from capital gains tax. There are different variations of Lima Arizona Charitable Remainder Inter Vivos Annuity Trust that donors can consider based on their individual needs and goals. These include: 1. Charitable Remainder Unit rust: Unlike the fixed annuity payment of the standard annuity trust, a unit rust calculates the annuity payment as a fixed percentage of the trust's value, which is revalued annually. This allows for potential growth in trust assets and provides a hedge against inflation. 2. Flip Charitable Remainder Trust: This type of trust starts as a standard annuity trust, but it includes a provision that allows it to "flip" into a unit rust if certain trigger events occur, such as the sale of highly appreciated property. This provides flexibility to donors to switch to a unit rust structure and potentially benefit from increased income when they no longer rely on the fixed annuity payment. 3. Net Income Charitable Remainder Unit rust: With this type of trust, the annuity payment is based on the trust's net income, rather than a fixed percentage of the trust's value. This allows for fluctuation in income payments and potentially higher payments during years of strong investment performance. Overall, the Lima Arizona Charitable Remainder Inter Vivos Annuity Trust is a valuable estate planning tool that enables donors to support charitable causes while still enjoying income from their donated assets. By choosing the appropriate type of trust, donors can tailor the structure to their specific preferences and financial circumstances.

The Lima Arizona Charitable Remainder Inter Vivos Annuity Trust is a type of charitable trust that allows the donor to make a substantial gift to a charitable organization while still retaining an income stream from the assets they have donated. This trust is established during the donor's lifetime (inter vivos) and provides a fixed annuity payment to the donor or a designated beneficiary for a specific period, usually for their lifetime or a certain number of years. The Lima Arizona Charitable Remainder Inter Vivos Annuity Trust offers certain tax advantages to the donor, as they can claim an income tax deduction for the present value of the charitable remainder interest at the time of the initial donation. Additionally, any appreciation in the value of the assets in the trust is exempt from capital gains tax. There are different variations of Lima Arizona Charitable Remainder Inter Vivos Annuity Trust that donors can consider based on their individual needs and goals. These include: 1. Charitable Remainder Unit rust: Unlike the fixed annuity payment of the standard annuity trust, a unit rust calculates the annuity payment as a fixed percentage of the trust's value, which is revalued annually. This allows for potential growth in trust assets and provides a hedge against inflation. 2. Flip Charitable Remainder Trust: This type of trust starts as a standard annuity trust, but it includes a provision that allows it to "flip" into a unit rust if certain trigger events occur, such as the sale of highly appreciated property. This provides flexibility to donors to switch to a unit rust structure and potentially benefit from increased income when they no longer rely on the fixed annuity payment. 3. Net Income Charitable Remainder Unit rust: With this type of trust, the annuity payment is based on the trust's net income, rather than a fixed percentage of the trust's value. This allows for fluctuation in income payments and potentially higher payments during years of strong investment performance. Overall, the Lima Arizona Charitable Remainder Inter Vivos Annuity Trust is a valuable estate planning tool that enables donors to support charitable causes while still enjoying income from their donated assets. By choosing the appropriate type of trust, donors can tailor the structure to their specific preferences and financial circumstances.