trust under which the charitable beneficiary has the right to receive an annuity amount each year during a stated term. The annuity amount is calculated based upon the initial value of the trust assets at the creation of the trust. After the stated term, the remainder of the trust is distributed to the non-charitable beneficiary.
A trust in which a fixed dollar amount or a percentage of the initial value of the trust assets is paid to charitable entities for a term of years, after which the trust principal is transferred to designated beneficiaries of the grantor. The charitable interest “leads” the beneficiary's interests in a CLAT.
A charitable lead trust that provides a series of guaranteed fix payments each year of the trust period. The amount of the payments does not change over the period.
A charitable lead trust in which an annuity is paid to one or more charities for a set term or the life or lives of one or more individuals with the remainder passing to one or more private individuals.
A charitable lead trust that provides a series of guaranteed fixed payments each year of the trust period. The payment amount does not change over that period.
A charitable lead annuity trust must have a fixed dollar amount distributed at least as often as annually. It does not have to state a dollar amount, but can be based on a percentage of assets as valued at the inception of the trust. A guaranteed annuity need not be the same dollar amount each year. As long as the annuity payments are determinable from the outset, the annuity may vary. What is not permitted is an annuity formula that will produce a variable annuity tied to a fluctuating index.