What is a Charitable Lead Annuity Trust in Florida?

When planning your estate, you may decide that in addition to taking care of your family, friends and pets, you also want to donate a portion of your assets to charity. There are a variety of options that will allow you to make charitable contributions to the organizations of your choice, while also providing for your beneficiaries.

A Charitable Lead Annuity Trust pays a stream of income to the charities named as beneficiaries in your trust for a specified number of years. Once the time limit is reached, the remainder of your assets will be distributed to your heirs. Charitable lead annuity trusts can be funded during the lifetime of the person who has created the trust, or after death in an individual’s last will and testament or living trust.

A charitable lead annuity trust is different from a charitable remainder trust. With a charitable remainder trust, the human beneficiaries get a stream of income for a period of years and the charity get the remainder benefit.

What are the benefits?

Setting up a Charitable Lead Annuity Trust may reduce or eliminate the estate taxes that may be due if your estate exceeds the estate tax limit, currently $11,580,000 per person. This allows you to benefit a charity or charities while still preserving wealth for your heirs.

Charitable lead annuity trusts are not right for everyone. They are an advanced estate planning technique and should only be undertaken after serious consideration and counsel from a qualified estate planning attorney.

Consult a knowledgeable estate planning attorney in Florida

At the Law Offices of Hoyt & Bryan, our experienced estate administration and estate planning attorneys are here to help families in Central Florida understand the complexities of the estate planning process. If you are ready to plan your estate, call the Law Offices of Hoyt & Bryan at (407) 977-8080 or contact us online to speak to an estate planning attorney today. We have office locations in Oviedo and Altamonte.

Peggy R. Hoyt - The Law Offices Of Hoyt & Bryan
About the Author: Peggy Hoyt
Peggy R. Hoyt practices in the areas of family wealth and legacy counselling, including trust and estate planning and administration, elder law, small business creation, succession and exit planning, real estate transactions and animal law.