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.
Nassau New York Inter Vivos Granter Charitable Lead Annuity Trust (also referred to as "Nassau CHIT-CHAT") is a legal vehicle designed to combine charitable giving with estate planning. This trust arrangement allows individuals in Nassau County, New York, to simultaneously support charitable causes and provide for their beneficiaries. A Charitable Lead Annuity Trust (FLAT) is a specific type of trust where the principal assets generate an income stream for a predetermined charitable organization for a fixed period or until the trust's termination. The granter retains the remainder interest, which passes to the beneficiaries at the end of the term. The granter receives an upfront tax deduction based on the projected income stream to the charitable organization. Keywords: Nassau New York, Inter Vivos Granter, Charitable Lead Annuity Trust, estate planning, charitable giving, beneficiaries, trust arrangement, Nassau CHIT-CHAT, trust termination, granter, upfront tax deduction, income stream, principal assets. Different types of Nassau New York Inter Vivos Granter Charitable Lead Annuity Trust may include: 1. Charitable Lead Unit rust (CLU): In this variation, instead of fixed annuity payments, the charitable organization receives a fixed percentage of the trust's net assets, revalued annually. 2. Charitable Lead Testamentary Annuity Trust (FLAT): This type of trust is set up through a will and takes effect upon the granter's death, allowing for posthumous charitable contributions. 3. Granter Retained Annuity Trust (GREAT): Though not specifically a Charitable Lead Annuity Trust, it has similar features. It allows the granter to receive an annuity payment for a defined period, with the remainder going to beneficiaries or charity. These different types provide flexibility in structuring the trust based on the unique preferences and objectives of the granter.Nassau New York Inter Vivos Granter Charitable Lead Annuity Trust (also referred to as "Nassau CHIT-CHAT") is a legal vehicle designed to combine charitable giving with estate planning. This trust arrangement allows individuals in Nassau County, New York, to simultaneously support charitable causes and provide for their beneficiaries. A Charitable Lead Annuity Trust (FLAT) is a specific type of trust where the principal assets generate an income stream for a predetermined charitable organization for a fixed period or until the trust's termination. The granter retains the remainder interest, which passes to the beneficiaries at the end of the term. The granter receives an upfront tax deduction based on the projected income stream to the charitable organization. Keywords: Nassau New York, Inter Vivos Granter, Charitable Lead Annuity Trust, estate planning, charitable giving, beneficiaries, trust arrangement, Nassau CHIT-CHAT, trust termination, granter, upfront tax deduction, income stream, principal assets. Different types of Nassau New York Inter Vivos Granter Charitable Lead Annuity Trust may include: 1. Charitable Lead Unit rust (CLU): In this variation, instead of fixed annuity payments, the charitable organization receives a fixed percentage of the trust's net assets, revalued annually. 2. Charitable Lead Testamentary Annuity Trust (FLAT): This type of trust is set up through a will and takes effect upon the granter's death, allowing for posthumous charitable contributions. 3. Granter Retained Annuity Trust (GREAT): Though not specifically a Charitable Lead Annuity Trust, it has similar features. It allows the granter to receive an annuity payment for a defined period, with the remainder going to beneficiaries or charity. These different types provide flexibility in structuring the trust based on the unique preferences and objectives of the granter.
