Stonehill College

Charitable Lead Annuity Trust for a Term Certain

Full Name
Transfer Value
Annuity Rate
Grantor Trust
Term Years

A charitable lead annuity trust is a custom designed and individually managed trust that enables you to give a fixed annual amount to charity for either a fixed term of years or the life of one or more individuals.

Upon conclusion of the measuring term, the trust terminates and, according to the terms of trust instrument, distributes its remaining assets (called the remainder interest) back to you or to one or more individuals that you have specified.

Input Descriptions

Full Name. Please enter the full name of the donor as you would like it to appear on the report.

Transfer Value. Enter the combined fair market value of all assets you would like to transfer. This can be as little as $1,000 or as much as $100,000,000.

Annuity Rate. Enter the Annuity Rate as a percentage (e.g. 5.0, 6.23). This rate will be multiplied by the trust's asset value on the transfer date to compute the level amount of income that will be paid to the charity from the trust each year. The higher the annuity rate, the higher the deduction.

Grantor Trust. A charitable lead trust can be structured as grantor trust or nongrantor trust. A grantor trust produces a charitable income tax deduction, whereas a nongrantor trust does not. In order for a grantor trust to produce an income tax deduction, you must be treated as the owner of the trust for income tax purposes. This means that all taxable income produced by the trust, including amounts it distributes to charity, is taxable to you. A nongrantor trust is a separate entity for income tax purposes; therefore, although you do not receive an income tax deduction, neither is any of the trust's income is taxable to you.

Term Years. Enter the number of years you would like the trust to pay the charity income. This number can be from 1 to 100 years. The longer the term, the greater the charitable deduction.

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