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.
Miami-Dade County, located in Florida, offers individuals seeking to engage in philanthropy the opportunity to establish a Charitable Lead Annuity Trust (FLAT). Specifically, one type of FLAT available in Miami-Dade County is the Inter Vivos Granter Charitable Lead Annuity Trust (ICCAT). This trust structure allows granters to support charitable causes while potentially enjoying certain tax benefits. An Inter Vivos Granter Charitable Lead Annuity Trust involves transferring assets, such as cash, securities, or real estate, into a trust that provides income to a designated charitable organization. The granter retains control over the trust during their lifetime and serves as the granter and trustee. The trust's primary purpose is to generate income for the chosen charitable organization during the specified term or number of years. Once the term of the trust has concluded, the remaining assets pass to the named non-charitable beneficiaries, often the granter's children or other designated individuals or entities. This type of trust is known as a "granter" trust because the granter would typically include the trust's income on their personal tax return. The granter may also receive an income tax deduction for the charitable contributions made to the trust. By establishing an Inter Vivos Granter Charitable Lead Annuity Trust, residents of Miami-Dade County can support causes close to their hearts while minimizing estate taxes and potentially reducing their taxable income. This type of trust structure allows individuals to leave a lasting legacy while providing ongoing financial support to charitable endeavors. It is important to consult with legal and financial professionals who specialize in estate planning and trust administration to ensure compliance with Miami-Dade County regulations and to make informed decisions regarding the establishment of an Inter Vivos Granter Charitable Lead Annuity Trust. Other types of Class that may exist in Miami-Dade County include the Testamentary Charitable Lead Annuity Trust (Éclat) and the CharitableLeadingtrustt (CLUB). The Éclat differs from the ICCAT in that it takes effect upon the granter's death, whereas an ICCAT is established during the granter's lifetime. The CLUB, on the other hand, provides a variable annual payment to the charitable organization based on a fixed percentage of the trust's assets. Each type of FLAT offers unique advantages and should be carefully considered based on the individual's circumstances and philanthropic goals.Miami-Dade County, located in Florida, offers individuals seeking to engage in philanthropy the opportunity to establish a Charitable Lead Annuity Trust (FLAT). Specifically, one type of FLAT available in Miami-Dade County is the Inter Vivos Granter Charitable Lead Annuity Trust (ICCAT). This trust structure allows granters to support charitable causes while potentially enjoying certain tax benefits. An Inter Vivos Granter Charitable Lead Annuity Trust involves transferring assets, such as cash, securities, or real estate, into a trust that provides income to a designated charitable organization. The granter retains control over the trust during their lifetime and serves as the granter and trustee. The trust's primary purpose is to generate income for the chosen charitable organization during the specified term or number of years. Once the term of the trust has concluded, the remaining assets pass to the named non-charitable beneficiaries, often the granter's children or other designated individuals or entities. This type of trust is known as a "granter" trust because the granter would typically include the trust's income on their personal tax return. The granter may also receive an income tax deduction for the charitable contributions made to the trust. By establishing an Inter Vivos Granter Charitable Lead Annuity Trust, residents of Miami-Dade County can support causes close to their hearts while minimizing estate taxes and potentially reducing their taxable income. This type of trust structure allows individuals to leave a lasting legacy while providing ongoing financial support to charitable endeavors. It is important to consult with legal and financial professionals who specialize in estate planning and trust administration to ensure compliance with Miami-Dade County regulations and to make informed decisions regarding the establishment of an Inter Vivos Granter Charitable Lead Annuity Trust. Other types of Class that may exist in Miami-Dade County include the Testamentary Charitable Lead Annuity Trust (Éclat) and the CharitableLeadingtrustt (CLUB). The Éclat differs from the ICCAT in that it takes effect upon the granter's death, whereas an ICCAT is established during the granter's lifetime. The CLUB, on the other hand, provides a variable annual payment to the charitable organization based on a fixed percentage of the trust's assets. Each type of FLAT offers unique advantages and should be carefully considered based on the individual's circumstances and philanthropic goals.
