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

This legal template pertains to the establishment of a Charitable Remainder Annuity Trust (CRAT) with consecutive interests for two measuring lives in the state of New York, under the jurisdiction of USA law.

A Charitable Remainder Annuity Trust (CRAT) is a legal instrument commonly used in estate planning that allows individuals (known as grantors or settlors) to make a substantial charitable gift while still retaining an annual income during their lifetime. This specific template focuses on CRATs established in the state of New York, complying with the applicable laws and regulations within the broader framework of USA law.

The template outlines the key terms and conditions of the CRAT, including the principal assets to be transferred to the trust, the annuity payment to be received by the grantors, and the charitable organization(s) that will ultimately receive the remainder interest in the trust upon the grantors' passing.

Furthermore, this template incorporates the concept of "consecutive interests for two measuring lives," which means that the annuity payment will continue throughout the lifetime of two individuals successively (typically a married couple or partners). This ensures that both individuals can benefit from the annuity stream, while still maintaining the charitable objectives of the trust.

The legal template includes language to specify the measuring lives, allowing for flexibility in choosing the appropriate individuals based on the grantors' preferences and circumstances. Additionally, it details the calculation method for determining the annuity payment to be made to the grantor(s) and any possible adjustments based on changes in the trust's value over time.

Importantly, the template incorporates provisions to meet the specific requirements set forth by New York state law, guaranteeing the trust's validity under the state's legal framework. It also considers any additional legal provisions that may be applicable under USA law, ensuring compliance with federal regulations governing charitable trusts.

Overall, this legal template provides a comprehensive framework for creating a Charitable Remainder Annuity Trust with consecutive interests for two measuring lives in accordance with the laws of the state of New York, operating within the broader legal framework of the United States.