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Charitable Lead Annuity Trust Measured by Grantor's Life

(Remainder to Persons Other Than Grantor)

CHARITABLE ANNUITY LEAD TRUST AGREEMENT made [date] by and between [name of donor], residing at [address] (the Grantor) and [name of trustee] with offices at [address] (the Trustee).

1. Delivery of Property and Acknowledgment by Trustee. The Grantor hereby transfers and delivers to the Trustee the property described in Schedule A annexed hereto [omitted] and made a part hereof, having a total fair market value of ........ dollars ($....). The Trustee acknowledges receipt of the same as an irrevocable transfer from the Grantor. The property and all receipts therefrom shall be managed and invested by the Trustee as a single fund upon the terms and conditions hereinafter set forth.

2. Designation of Gift. This gift shall be designated in the Trustee's records as the [name of donor] Annuity Lead Trust For [name of charitable income beneficiary] (the Charity).

3. No Additional Contributions. No additional contributions shall be made to the Trust.

4. Term of Trust. The term of this Trust shall commence on the date hereof and terminate upon the Grantor's death.

5. Payments to Charitable Beneficiary. During the term of this Trust, the Trustee shall pay to the Charity in each taxable year of the Trust an annuity amount equal to ........ percent (....%) of the fair market value of the property transferred to the Trustee pursuant to Paragraph 1 hereof. The annuity amount shall be paid annually on the last day of the Trust's taxable year. The payments shall be made first from the trust's ordinary income (including short-term capital gains) that is not unrelated business income and, to the extent not so satisfied, from 50 percent of any unrelated business income, the Trust's long-term capital gains, the balance of the Trust's unrelated business income, the Trust's tax-exempt income, and finally the principal of the Trust, in that order. Any ordinary income (excluding unrelated income) of the Trust for a taxable year that is in excess of the annuity amount shall be paid to the Charity. In determining the annuity amount, the Trustee shall prorate the annuity amount for any short year in accordance with Paragraph 7 of the Agreement.

6. Distribution Upon Termination of Trust. Upon the termination of this Trust, the Trust's assets, including all principal and income other than any amount distributable to the Charity shall be distributed to my son, [name]. Should my said son not be alive at such time, the Trust's assets shall be distributed to my son's estate.

7. Proration for Short Taxable Year. The first taxable year of the Trust begins with the date of this Agreement and ends on December 31, 20..... Subsequent taxable years shall begin on January 1 and end on December 31. In the case of the first taxable year which consists of fewer than twelve months, the annuity amount which must be distributed to the Charity shall be the annuity amount defined in Paragraph 5 hereof multiplied by a fraction of which the numerator is the number of days in the short taxable year of the Trust and the denominator is 365 [366 if February 29 is a day included in the numerator]. For the taxable year in which the Trust terminates, the annuity amount which must be distributed to the Charity shall be the annuity amount defined in Paragraph 5 hereof multiplied by a fraction of which the numerator is the number of days in the period beginning with the first day of the taxable year in which the Trust terminates and ending with the day on which the Trust terminates and the denominator is 365 [366 if February 29 is a day included in the numerator].

8. Required Charitable Use. If at any time income or principal is to be distributed to the Charity it is not an organization described in Sections 170(b)(1)(A), 170(c), 2055(a), and 2522(a) of the Internal Revenue Code of 1986 or of any corresponding sections of any federal internal revenue code hereinafter enacted the Trustee shall distribute such income or principal to one or more organizations that are described by such Sections of the Internal Revenue Code of 1986 as the Trustee in its sole discretion shall select and in such amounts as the Trustee in its sole discretion shall determine.

9. Trustee's Powers. The trustee shall have all the powers conferred upon it by law. In addition, the Trustee is authorized to retain the assets that are described in Exhibit A or to sell the assets and reinvest the proceeds in any manner that is consistent with the provisions of Sections 642(c) and 2522 of the Internal Revenue Code of 1986 and the regulations thereunder or of any corresponding section of any federal internal revenue code hereinafter enacted and the regulations thereunder. No provision of this trust agreement shall be construed as restricting the Trustee from investing the Trust's assets in a manner which could result in the annual realization of a reasonable amount of income or gain from the sale or disposition of the Trust's assets.

10. Trustee's Compensation; Trustee's Bond. The Trustee shall receive the compensation for services rendered under this Agreement as provided by the laws of the State of ........ The Trustee shall not be required to post any bond or other security for the faithful performance of its duties hereunder in any jurisdiction.

11. Prohibited Activities. It is the Grantor's intention that this Trust qualify as a charitable annuity lead trust under Section 2522 of the Internal Revenue Code of 1986 and the regulations thereunder or of any corresponding section of any federal internal revenue code hereinafter enacted so that the annuity distributions to the Charity will be deductible from the Trust's gross income to the extent permitted by Section 642(c) of the Internal Revenue Code of 1986 and the regulations thereunder or of any corresponding section of any federal internal revenue code hereinafter enacted and the regulations thereunder. The provisions of this agreement shall be interpreted and the Trust shall be administered and valued accordingly. Notwithstanding any other provision hereof, the Trustee shall not (a) engage in any acts of self-dealing as defined in Section 4941(d) of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue code hereinafter enacted; (b) retain any excess business holdings as defined in Section 4943(c) of the Internal Revenue Code of 1986 which would subject the Trust to tax under Section 4943 of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue code hereinafter enacted; (c) make any investment that would jeopardize the Trust's charitable purposes or subject the Trust to tax under Section 4944 of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue code hereinafter enacted; or (d) make any taxable expenditures as defined in Section 4945(d) of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue code hereinafter enacted. Further, as a precaution against the possibility that Section 4942 of the Internal Revenue Code of 1986 may at some time be deemed applicable to this Trust by reason of Section 508(e) of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue code hereinafter enacted, the Trustee shall make distributions of income in each taxable year at such time and in such manner as not to subject the Trust to tax under Section 4942 of the Internal Revenue Code of 1986 or of any corresponding section of any federal internal revenue code hereinafter enacted.

12. Estate and Death Taxes. No estate or death taxes shall be allocated to or recoverable from the Trust and the Grantor will not make any direction to the contrary in his Will. This provision may be enforced by the Trustee and the Charity, acting jointly or severally.

13. Trustee's Power to Amend Agreement. The Trustee, acting alone, shall have the power to amend this Agreement for the sole purpose of ensuring that this Agreement qualifies as a charitable annuity lead trust in accordance with the requirements of Sections 170(f)(2)(B), 2522(c)(2)(B), and 2055(e)(2)(B) of the Internal Revenue Code of 1986 and the regulations thereunder or of any corresponding sections of any federal internal revenue code hereinafter enacted and the regulations thereunder.

14. Governing Law. This Agreement is made in accordance with the laws of the State of ........ and is to be interpreted accordingly. However, should such laws conflict in any way with the provisions of Sections 170(f)(2)(B), 2522(c)(2)(B), and 2055(e)(2)(B) of the Internal Revenue Code of 1986 and the regulations thereunder or of any corresponding sections of any federal internal revenue code hereinafter enacted and the regulations thereunder regarding the qualification of the Trust as a charitable annuity lead trust so that the value of the interest passing to the Charity is not deductible for gift or estate tax purposes as a charitable guaranteed annuity under Section 2522 and the annuity distribution to the Charity are not deductible from the Trust's gross income pursuant to Section 642(c) of the Internal Revenue Code, then the aforesaid Code sections and regulations shall govern.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.

[signature]

Donor

[name of institution]

By: [signature]

[title]

Trustee

[Acknowledgments]

*** If Required By State Law ***

This Section for Notary:

ACKNOWLEDGMENT

State of _________

County of ________ [COUNTY]

On [DATE] before me, [NAME OF NOTARY], notary, personally appeared [NAME OF PERSON(S) INVOLVED], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.

Signature ________
Notary

My commission expires: _____

(Seal)