Definitions for "CHARITABLE LEAD ANNUITY TRUST"
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.