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.
Kings New York Inter Vivos Granter Charitable Lead Annuity Trust is a specific type of charitable trust that allows individuals to make significant donations to charitable organizations while still enjoying financial benefits during their lifetime. This trust is commonly used by high-net-worth individuals who wish to support philanthropic causes. The Kings New York Inter Vivos Granter Charitable Lead Annuity Trust functions by transferring assets, such as cash, securities, or real estate, into a trust. The trust is carefully managed by a trustee who oversees the distribution of income generated by the trust to the chosen charitable organizations. The trust is established for a predetermined term, after which any remaining assets are typically passed on to designated beneficiaries, such as family members or other loved ones. One of the key advantages of the Kings New York Inter Vivos Granter Charitable Lead Annuity Trust is that the donor can claim an immediate income tax deduction for the present value of the income stream that will be provided to the chosen charities. This allows the donor to reduce their tax liability during their lifetime, making it an appealing option for those seeking to combine philanthropy with tax planning. It is worth mentioning that there are variations of the Kings New York Inter Vivos Granter Charitable Lead Annuity Trust, including: 1. Non-Grantor or Family Granter Charitable Lead Annuity Trust: In this type of trust, the donor designates family members or other loved ones as the ultimate beneficiaries instead of the charity. This still offers some tax benefits and allows the donor to support both philanthropic causes and their family's financial security. 2. Granter Retained Annuity Trust (GREAT): While not specifically related to the Kings New York Inter Vivos Granter Charitable Lead Annuity Trust, the GREAT is a similar type of trust where the donor retains an annuity for a specific term, after which the remaining trust assets are transferred to beneficiaries, either charitable or non-charitable. Overall, the Kings New York Inter Vivos Granter Charitable Lead Annuity Trust is a valuable tool for individuals who wish to make a lasting impact on charitable organizations while also enjoying certain financial benefits during their lifetime. It offers tax planning opportunities and allows donors to leave a legacy that reflects their philanthropic values.Kings New York Inter Vivos Granter Charitable Lead Annuity Trust is a specific type of charitable trust that allows individuals to make significant donations to charitable organizations while still enjoying financial benefits during their lifetime. This trust is commonly used by high-net-worth individuals who wish to support philanthropic causes. The Kings New York Inter Vivos Granter Charitable Lead Annuity Trust functions by transferring assets, such as cash, securities, or real estate, into a trust. The trust is carefully managed by a trustee who oversees the distribution of income generated by the trust to the chosen charitable organizations. The trust is established for a predetermined term, after which any remaining assets are typically passed on to designated beneficiaries, such as family members or other loved ones. One of the key advantages of the Kings New York Inter Vivos Granter Charitable Lead Annuity Trust is that the donor can claim an immediate income tax deduction for the present value of the income stream that will be provided to the chosen charities. This allows the donor to reduce their tax liability during their lifetime, making it an appealing option for those seeking to combine philanthropy with tax planning. It is worth mentioning that there are variations of the Kings New York Inter Vivos Granter Charitable Lead Annuity Trust, including: 1. Non-Grantor or Family Granter Charitable Lead Annuity Trust: In this type of trust, the donor designates family members or other loved ones as the ultimate beneficiaries instead of the charity. This still offers some tax benefits and allows the donor to support both philanthropic causes and their family's financial security. 2. Granter Retained Annuity Trust (GREAT): While not specifically related to the Kings New York Inter Vivos Granter Charitable Lead Annuity Trust, the GREAT is a similar type of trust where the donor retains an annuity for a specific term, after which the remaining trust assets are transferred to beneficiaries, either charitable or non-charitable. Overall, the Kings New York Inter Vivos Granter Charitable Lead Annuity Trust is a valuable tool for individuals who wish to make a lasting impact on charitable organizations while also enjoying certain financial benefits during their lifetime. It offers tax planning opportunities and allows donors to leave a legacy that reflects their philanthropic values.
