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

This legal template refers to a document that establishes a Charitable Remainder Annuity Trust (CRAT) in the state of Massachusetts, governed by the laws of the United States. The CRAT is an estate planning tool that allows individuals to make charitable donations while also providing an income stream for themselves or other beneficiaries for a specified period.

In this specific template, the CRAT is designed to provide consecutive interests for two measuring lives. This means that the trust will generate income for the life of the first measuring life, typically the individual who establishes the trust or another primary beneficiary. Once the first measuring life passes away, the income will continue to be distributed for the remaining life of a secondary measuring life, usually a spouse or another designated beneficiary.

The primary goal of this legal template is two-fold: First, it aims to maximize the charitable impact of the individual's estate by designating a portion of their assets to be donated to a chosen charitable organization or cause. This aligns with the individual's philanthropic objectives and allows for potential tax benefits associated with charitable donations.

Secondly, the template ensures a steady income stream for the primary and secondary measuring lives, providing financial security during their lifetimes. This could be particularly beneficial for individuals who wish to support a charitable cause while still ensuring their own financial well-being and that of their loved ones.

By utilizing this legal template under USA law, individuals in Massachusetts can establish a Charitable Remainder Annuity Trust that supports their charitable aspirations, provides income for themselves and/or their chosen beneficiaries, and adheres to all relevant legal requirements and regulations.