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.
Los Angeles, California Inter Vivos Granter Charitable Lead Annuity Trust: A Detailed Description The Los Angeles, California Inter Vivos Granter Charitable Lead Annuity Trust is a specialized type of trust that allows individuals in Los Angeles to contribute their assets to a charitable cause while enjoying certain financial benefits during their lifetime. This trust is primarily designed to provide consistent income to designated charities for a specified period, after which the remaining assets pass on to the trust's beneficiaries. One of the key features of this trust is that it is "inter vivos" in nature, meaning it is established during the granter's lifetime rather than being created through a will or testamentary document. By establishing an inter vivos trust, individuals have the opportunity to witness their charitable contributions in action and actively participate in the trust's management. The granter, the person who establishes the trust, funds it with various assets such as cash, securities, or real estate, and designates a specific charitable organization or organizations to receive the income generated. The trust assets are professionally managed, and a fixed annual income, known as an annuity, is paid to the chosen charitable beneficiaries. The Los Angeles Inter Vivos Granter Charitable Lead Annuity Trust offers several potential advantages. Firstly, the donor can secure a charitable income tax deduction based on the present value of the projected payments to be made to the charitable organizations. This deduction can help reduce the donor's overall tax liability. Moreover, by establishing this trust, individuals can support causes and charities close to their heart while ensuring their financial legacy is preserved for their loved ones. Once the term of the trust ends, the remaining assets are distributed to the non-charitable beneficiaries, often family members or other specified individuals. This arrangement allows for philanthropic giving and intergenerational wealth transfer simultaneously. While there may not be specific subtypes of the Los Angeles California Inter Vivos Granter Charitable Lead Annuity Trust, variations and customization can be implemented to meet individual needs and preferences. Depending on the granter's goals, various factors such as the length of the charitable payments, the charitable beneficiaries, the assets contributed, and the distribution plan to the non-charitable beneficiaries can all be tailored to create a unique trust structure. In conclusion, the Los Angeles, California Inter Vivos Granter Charitable Lead Annuity Trust offers an opportunity for individuals in Los Angeles to make a lasting impact on charitable causes while enjoying tax advantages and preserving their assets for their loved ones. This trust structure allows for the alignment of philanthropic values with long-term financial planning, empowering individuals to leave a meaningful legacy in their community.
