Charitable Remainder Annuity Trust (CRAT): Consecutive Interests For Two Measuring Lives (California)

A Charitable Remainder Annuity Trust (CRAT): Consecutive Interests For Two Measuring Lives (California) legal template is a document designed for individuals or entities residing in California, United States, who wish to establish a charitable trust arrangement. Specifically, this template caters to a CRAT structure, which involves two measuring lives in consecutive order.

A CRAT is a legally recognized trust structure that combines elements of charitable giving and financial planning. It allows the grantor (creator of the trust) to transfer assets, such as cash, securities, or real estate, into the trust while retaining the right to receive fixed annuity payments for a predetermined period. Upon the grantor's death or the designated measuring lives, these assets are then transferred to a designated charitable organization or foundation.

This particular legal template focuses on CRATs with consecutive interests for two measuring lives, meaning that the annuity payments continue to be paid to the grantor or other non-charitable beneficiaries until the second measuring life passes away or a specified period expires. At this point, the remaining assets in the trust are fully distributed to the designated charity.

The template is tailored to adhere to the specific laws and regulations governing charitable trusts in the state of California, ensuring compliance with local legal requirements. It provides a comprehensive framework that outlines the trust's purpose, provisions for selecting the measuring lives, rules for calculating annuity payments, utilization of trust income, and distribution of remaining assets to the designated charitable organization.

By utilizing this legal template, individuals or entities can establish a Charitable Remainder Annuity Trust (CRAT) with consecutive interests for two measuring lives in California, maximizing the benefit of their charitable contributions while potentially receiving fixed annuity payments for a specified period.