In a charitable lead trust, a donor transfers property to the lead trust, which pays a percentage of the value of the trust assets, usually for a term of years, to the charity. At the end of the trust term, the remaining assets in the trust and any growth it has realized are passed to donor's heirs. Although there is no income tax deduction when the donor creates a charitable lead trust, his/her gift or estate tax is greatly discounted and any growth is passed to his/her heirs gift and estate tax free.
In a charitable lead unitrust, a donor irrevocably transfers cash, closely held securities or other valuable property to a trustee who, during the unitrusts term, invests the unitrust's assets. Each year, the trustee distributes a fixed percentage of the unitrust's net asset value, as calculated annually, to a named charity. These payments are made out of trust income (or trust principal if the trust income is not adequate) and are tax deductible as a charitable contribution for the year in which they are made. If, however, trust income exceeds the charitable payment for a given year, the trust pays income tax on the excess.
When the lead unitrust term ends, the unitrust distributes the remainder of its accumulated assets to a non-charitable remainderman, usually family members or other beneficiaries named by the donor. That amount is subject to federal gift tax based on the current fair market value of the gift at the time the trust is established. Gift tax is paid on the remainder interest as calculated from the current fair market value of the asset at the time the trust is established; generally this amount is much less than the estate tax would be on the asset as calculated at the time it is inherited.
Miami-Dade Florida Charitable Lead Inter Vivos Unit rust is a type of charitable trust established in Miami-Dade County, Florida. It is designed to provide financial support to a charitable organization of the donor's choice while retaining some income for the donor or other beneficiaries during their lifetime or a specific term. Key features and benefits of Miami-Dade Florida Charitable Lead Inter Vivos Unit rust include: 1. Charitable Giving: It offers individuals an opportunity to support causes and organizations they care about by making regular payments to the chosen charitable organization(s) during the trust's term. 2. Income Retention: Unlike other charitable trusts, Inter Vivos Unit rusts allow the donor or other specified beneficiaries to receive a fixed percentage of the trust's value annually or more frequently during its term. 3. Income Tax Deductions: Donors who establish a Miami-Dade Florida Charitable Lead Inter Vivos Unit rust may qualify for income tax deductions based on the present value of the charitable payments. 4. Estate Planning: This trust can be an effective estate planning tool, as it enables individuals to transfer assets to beneficiaries while fulfilling their philanthropic goals. Different types of Miami-Dade Florida Charitable Lead Inter Vivos Unit rusts may include: 1. Term Certain Unit rust: The trust operates for a fixed number of years, after which the remaining assets are distributed to the beneficiaries. 2. Granter Retained Income Trust (GRIT): This type of trust allows the donor to retain an income stream from the trust assets for a specified term before the remaining assets are transferred to the beneficiaries. 3. Charitable Annuity Unit rust (FLAT): With a FLAT, the donor receives a fixed annual payment, and any remaining assets pass to the charitable organization(s) at the end of the trust term. 4. Charitable Remainder Unit rust (CUT): In a CUT, the donor or other beneficiaries receive payments based on a percentage of the trust's value, and upon termination, the remaining assets are distributed to the charitable organization(s). Miami-Dade Florida Charitable Lead Inter Vivos Unit rusts offer individuals in the community an opportunity to make a lasting impact through charitable giving while enjoying certain financial benefits. It is advisable to consult with legal and financial professionals experienced in trust planning to determine the most suitable type of charitable lead trust based on individual goals and circumstances.Miami-Dade Florida Charitable Lead Inter Vivos Unit rust is a type of charitable trust established in Miami-Dade County, Florida. It is designed to provide financial support to a charitable organization of the donor's choice while retaining some income for the donor or other beneficiaries during their lifetime or a specific term. Key features and benefits of Miami-Dade Florida Charitable Lead Inter Vivos Unit rust include: 1. Charitable Giving: It offers individuals an opportunity to support causes and organizations they care about by making regular payments to the chosen charitable organization(s) during the trust's term. 2. Income Retention: Unlike other charitable trusts, Inter Vivos Unit rusts allow the donor or other specified beneficiaries to receive a fixed percentage of the trust's value annually or more frequently during its term. 3. Income Tax Deductions: Donors who establish a Miami-Dade Florida Charitable Lead Inter Vivos Unit rust may qualify for income tax deductions based on the present value of the charitable payments. 4. Estate Planning: This trust can be an effective estate planning tool, as it enables individuals to transfer assets to beneficiaries while fulfilling their philanthropic goals. Different types of Miami-Dade Florida Charitable Lead Inter Vivos Unit rusts may include: 1. Term Certain Unit rust: The trust operates for a fixed number of years, after which the remaining assets are distributed to the beneficiaries. 2. Granter Retained Income Trust (GRIT): This type of trust allows the donor to retain an income stream from the trust assets for a specified term before the remaining assets are transferred to the beneficiaries. 3. Charitable Annuity Unit rust (FLAT): With a FLAT, the donor receives a fixed annual payment, and any remaining assets pass to the charitable organization(s) at the end of the trust term. 4. Charitable Remainder Unit rust (CUT): In a CUT, the donor or other beneficiaries receive payments based on a percentage of the trust's value, and upon termination, the remaining assets are distributed to the charitable organization(s). Miami-Dade Florida Charitable Lead Inter Vivos Unit rusts offer individuals in the community an opportunity to make a lasting impact through charitable giving while enjoying certain financial benefits. It is advisable to consult with legal and financial professionals experienced in trust planning to determine the most suitable type of charitable lead trust based on individual goals and circumstances.
