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.
Collin Texas Inter Vivos Granter Charitable Lead Annuity Trust: A Collin Texas Inter Vivos Granter Charitable Lead Annuity Trust is a specialized type of trust that allows individuals in Collin County, Texas, to support charitable causes while still benefiting from certain tax advantages and maintaining control over their assets during their lifetime. This trust is established and operated by a granter, who funds the trust with assets for a predetermined period of time. The Inter Vivos Granter Charitable Lead Annuity Trust is designed to provide a specific annuity payment to one or more chosen charitable organizations for a fixed period or until the granter's passing. The annuity payment is calculated based on the initial value of the trust's assets and a fixed percentage specified in the trust agreement. This ensures a steady stream of income to the selected charities, helping them pursue their philanthropic missions. By establishing this trust in Collin County, Texas, the granter gains several benefits. Firstly, during the term of the trust, the granter can claim a current income tax charitable deduction for the present value of the annuity payments that will go to the charitable beneficiaries. This deduction helps reduce the granter's income tax liability. Additionally, any assets within the trust may experience potential estate tax savings upon the granter's passing. Moreover, the Collin Texas Inter Vivos Granter Charitable Lead Annuity Trust allows the granter to retain control over the trust during their lifetime. This means the granter can select the charitable beneficiaries, determine how the annuity payments will be used, and specify any additional terms and conditions that govern the trust's administration. While the Collin Texas Inter Vivos Granter Charitable Lead Annuity Trust generally functions with a fixed annuity payment to charitable organizations, it is essential to note that there can be variations within this trust structure. These variations may include the Collin Texas Inter Vivos Granter Charitable Lead Unit rust, which distributes a fixed percentage of the trust's assets to charitable beneficiaries instead of a fixed annuity payment. In summary, the Collin Texas Inter Vivos Granter Charitable Lead Annuity Trust is an effective estate planning tool for individuals in Collin County, Texas, who wish to support charitable causes while enjoying tax advantages and retaining control over their assets during their lifetime.Collin Texas Inter Vivos Granter Charitable Lead Annuity Trust: A Collin Texas Inter Vivos Granter Charitable Lead Annuity Trust is a specialized type of trust that allows individuals in Collin County, Texas, to support charitable causes while still benefiting from certain tax advantages and maintaining control over their assets during their lifetime. This trust is established and operated by a granter, who funds the trust with assets for a predetermined period of time. The Inter Vivos Granter Charitable Lead Annuity Trust is designed to provide a specific annuity payment to one or more chosen charitable organizations for a fixed period or until the granter's passing. The annuity payment is calculated based on the initial value of the trust's assets and a fixed percentage specified in the trust agreement. This ensures a steady stream of income to the selected charities, helping them pursue their philanthropic missions. By establishing this trust in Collin County, Texas, the granter gains several benefits. Firstly, during the term of the trust, the granter can claim a current income tax charitable deduction for the present value of the annuity payments that will go to the charitable beneficiaries. This deduction helps reduce the granter's income tax liability. Additionally, any assets within the trust may experience potential estate tax savings upon the granter's passing. Moreover, the Collin Texas Inter Vivos Granter Charitable Lead Annuity Trust allows the granter to retain control over the trust during their lifetime. This means the granter can select the charitable beneficiaries, determine how the annuity payments will be used, and specify any additional terms and conditions that govern the trust's administration. While the Collin Texas Inter Vivos Granter Charitable Lead Annuity Trust generally functions with a fixed annuity payment to charitable organizations, it is essential to note that there can be variations within this trust structure. These variations may include the Collin Texas Inter Vivos Granter Charitable Lead Unit rust, which distributes a fixed percentage of the trust's assets to charitable beneficiaries instead of a fixed annuity payment. In summary, the Collin Texas Inter Vivos Granter Charitable Lead Annuity Trust is an effective estate planning tool for individuals in Collin County, Texas, who wish to support charitable causes while enjoying tax advantages and retaining control over their assets during their lifetime.
