Charitable Lead Annuity Trust for a Term Certain
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.
Full Name. Please enter the full name of the donor as you would like it to appear on
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
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.