Fill and Sign the Charitable Lead Form

Charitable Inter Vivos Lead Annuity Trust On this the ______day of ________________, 20____, I, ______________________ (Name of Grantor) of ___________________________________________________________ _________________ (street address, city, county, state, zip code) , the Grantor , and ___________________________ (Name of Grantee) of ________________________________ __________________ (street address, city, county, state, zip code) , the Trustee, make this trust. 1. Transfers to the Trust I transfer to the Trustee the property listed in Schedule A , and may transfer additional assets to the Trustee to be held, managed, and distributed under the terms and conditions set forth in this instrument. 2. Charitable Lead Annuity A. Payment of Annuity Amount. In each taxable year of the trust for a period of _____ years, the Trustee shall pay to _____________________________ (Name of Charitable Organization) , a _________________ (name of state) non-profit corporation, the Charity , an Annuity Amount, defined in Subparagraph B below. B. Annuity Amount. The "Annuity Amount" shall be equal to that percentage of the initial net fair market value of the assets of the trust as shall produce a charitable annuity interest equal in value to __ _____ % of the initial value of the entire trust fund. C. At termination. After _______ years, the Trustee shall distribute the remaining trust funds in equal shares, with one share for each of my then living children and one share for the estate of each of my children who are not then living. 3. The Trustees A. Named trustees. _________________________ (Name of Trustee) is the initial Trustee of this trust . 1. If _________________________ (Name of Trustee) shall be unable or unwilling to continue serving, then _________________________ (Name of Secondary Trustee) , of ______________________________________________ ________________________ (street address, city, county, state, zip code) , shall have the right to become the Trustee of this trust . 2. No Trustee named in this instrument or by the Trustee shall be required to provide surety or other security on a bond. 3. No Trustee shall be responsible for or need inquire into any acts or omissions of a prior Trustee. B. Additional trustee. The Trustee may appoint any person as Co-Trustee or additional Trustee to serve at the pleasure of the appointing Trustee. C. Delegation. Any Trustee may delegate any powers and authorities to another Trustee for any period that the delegating Trustee deems appropriate. A person dealing in good faith with any Trustee may rely without inquiry upon that Trustee's representation that a particular power or authority has been delegated and not rescinded. D. Resignation. Any Trustee may resign by giving written notice specifying the effective date of the resignation to the designated successor Trustee. 1. If no successor Trustee is designated, a resigning Trustee shall give this written notice to the Grantor and the Charity. 2. A successor Trustee to fill any vacancy shall be named by the Grantor, if then living or otherwise by the Charity. E. Compensation. Each person who serves as a Trustee shall be entitled to receive reasonable compensation for services rendered. In the case of a corporate Trustee, reasonable compensation is based upon its published fee schedule in effect at the time its services are rendered, or as otherwise agreed, and its compensation may vary from time to time based on that schedule. F. Management powers. I grant the Trustee the powers described below, to be exercised in a fiduciary capacity. 1. The Trustee may hold and retain as part of the trust any assets received from any source, and invest and reinvest them (or leave them temporarily uninvested) in any type of property and every kind of investment in the same manner as a prudent investor would invest his or her own assets. 2. The Trustee may sell or exchange any real or personal property contained in the trust , for cash or credit, at public or private sale, and with such warranties or indemnifications as the Trustee may deem advisable. 3. The Trustee may borrow money for the benefit of the trust and may secure these debts with assets of the trust . 4. The Trustee may grant security interests and execute all instruments creating such interests on such terms as the Trustee may deem advisable. 5. The Trustee may compromise and adjust claims against or on behalf of the trust on such terms as the Trustee may deem advisable. 6. The Trustee may take title to any securities in the name of any custodian or nominee without disclosing this relationship. 7. The Trustee may determine whether receipts are to be allocated to income or principal and whether disbursements are to be charged against income or principal to the extent not clearly established by state law. All determinations made by the Trustee in good faith shall not require equitable adjustments. 8. The Trustee may make all tax elections and allocations the Trustee may consider appropriate; however, this authority is exercisable only in a fiduciary capacity and may not be used to enlarge or shift any beneficial interest except as an incidental consequence of the discharge of fiduciary duties. All tax elections and allocations made by the Trustee in good faith shall not require equitable adjustments. 9. The Trustee shall distribute any of the trust assets to a minor by distributing them to any appropriate person (who may be a Trustee) chosen by the Trustee as custodian under any appropriate Uniform Transfers (or Gifts) to Minors Act, to be held for the maximum period of time allowed by law. The Trustee may also sell any asset that cannot legally be held under this custodianship and invest the sales proceeds in assets that can be held under this custodianship. 10. The Trustee may employ such lawyers, accountants, and other advisers as the Trustee may deem useful and appropriate for the administration of the trust . The Trustee may employ a professional investment adviser and delegate to this adviser any discretionary investment authorities to manage the investments of the trust (including any investments in mutual funds, investment trusts , or managed accounts), and may rely on the adviser's investment recommendations without liability to any beneficiary. 11. The Trustee may divide and distribute the assets of the trust in kind or in cash, or partly in each, without regard to the income tax basis of any asset and without the consent of any beneficiary. The decision of the Trustee in dividing any portion of the trust between or among two or more beneficiaries shall be binding on all persons. 4. Mandatory Lead Trust Provisions A. Overriding tax purpose. This trust is established as, and shall operate as, a charitable lead trust the charitable interest in which is a guaranteed annuity under 26 U.S.C.A. § 170(f)(2)(B) of the Internal Revenue Code of 1986, as amended (the "Code") and all provisions of this instrument shall be construed in a manner consistent with this purpose. The Trustee shall not exercise any discretion under this instrument in a manner inconsistent with this purpose. B. Payment of the Annuity Amount. The Annuity Amount shall be paid in equal quarterly installments on the last day of each quarter. The Annuity Amount shall be paid from trust income and, to the extent income is insufficient, from principal. Any trust income for a taxable year in excess of the Annuity Amount shall be added to principal. C. Misvaluation. If the initial net fair market value of the assets of the trust is incorrectly determined, then within a reasonable period after the value is finally determined for federal tax purposes, the Trustee shall pay to the Charity (in the case of an undervaluation) or the Charity shall pay to the Trustee (in the case of an overvaluation) an amount equal to the difference between the Annuity Amount properly payable and the Annuity Amount actually paid. D. Short taxable years. The Trustee shall prorate the Annuity Amount on a daily basis for a short taxable year, in accordance with applicable regulations of the U.S. Treasury Department. E. Private foundation rules. The trust income for each taxable year shall be distributed at such time and in such manner as not to subject the trust to tax under 26 U.S.C.A. § 4942 . The Trustee shall not: (1) engage in any act of self-dealing, as defined in 26 U.S.C.A. § 4941 ; (2) make any taxable expenditures, as defined in 26 U.S.C.A. § 4945(d) ; (3) make any investments that jeopardize the charitable purpose of any Charitable Lead Trust , within the meaning of 26 U.S.C.A. § 4944 ; or (4) retain any excess business holdings, within the meaning of 26 U.S.C.A. § 4943 . F. Order of payments. The Annuity Amount shall be paid first from ordinary taxable income of the trust (including short-term capital gains) which is not unrelated business income. If such ordinary taxable income is insufficient to satisfy the Annuity Amount, it shall be paid from long-term capital gains, unrelated business income, tax-exempt income, and trust principal, in that order. G. Taxable year. The trust's taxable year shall be the calendar year. H. Investment of trust assets. Nothing in this instrument shall be construed to restrict the Trustee from investing the trust assets in a manner that could result in the annual realization of a reasonable amount of income or gain from the sale or disposition of trust assets. I. Irrevocability. This trust is irrevocable. However, the Trustee may, acting alone, amend the trust as may be necessary to ensure that the charitable interest qualifies and continues to qualify as a guaranteed annuity interest described in § 170(f)(2)(B) of the Code. J. Qualification of charities . If any charity designated to receive any distribution from this trust is not a publicly supported organization described in 26 U.S.C.A. §§ 170(b)(1)(A), (c) , 2055(a) , and 2522(a) , at the time when any principal or income of the trust is to be distributed to it, then the Trustee shall distribute such principal and income to one or more organizations, selected at the Trustee's sole discretion, which are then publicly supported organizations described in Sections 170(b)(1)(A), (c), 2055(a), and 2522(a) of the Code. 5. Trust Administration A. Disabled beneficiaries. The Trustee may distribute income or principal, or both, for the benefit of a minor or disabled beneficiary to the beneficiary's parent, guardian, or personal representative, or to the person with whom the beneficiary resides, without looking to the proper application of those payments. B. Accountings. The Trustee shall not be required to file annual accounts with any court or court official in any jurisdiction. C. Change of situs. The Trustee may change the situs of this trust (and to the extent necessary or appropriate, move the trust assets) to a state or country other than the one in which the trust is then administered, if the Trustees believe it to be in the best interests of the trust or the beneficiaries. The Trustee may elect that the law of such other jurisdiction shall govern the trust to the extent necessary or appropriate under the circumstances. D. Not a separate taxpayer. I intend that this trust be a grantor trust for federal income tax purposes. 1. Upon demand by my _____________ ( son/daughter) , _____________________ ( name of first child) , the Trustee shall (a) transfer any trust assets in exchange for assets of equivalent value; or (b) lend to me any of the trust income and principal, in exchange for my unsecured promissory note of equal value to the amount lent, bearing adequate interest. 2. If _______________________ ( name of first child ) , is unable to exercise these powers, they shall be exercisable by my ____________ (son/daughter) , _________________________ (name of second child) . 3. These powers are exercisable by _________________________ (name of first child) or ________________________ (name of second child) solely in a nonfiduciary capacity. 4. Either by ________________________ (name of first child) or _____________________________ (name of second child) may waive either or both of these powers by a writing delivered to a Trustee, and such waiver shall bind the party who waives this power, the Trustee, and all other persons. 5. The powers under this paragraph shall not be exercisable to the extent that the exercise of these powers would reasonably be expected to preclude the deductibility of the charitable interest as a right to an annually distributed fixed percentage of the fair market value of the trust property (to be determined yearly), as described in § 170(f)(2)(B) of the Code. This limitation shall apply even if it causes the trust to be a separate taxpayer for federal income tax purposes. 6. Definitions and Miscellaneous A. Children. "Children" includes those now or later born, and in addition to the natural born, any child now or later legally adopted. B. Disabled. An individual is "disabled" or "under a disability" if the Trustee (or, if the person whose disability is in question is a Trustee, the next successor Trustee) receives written certification from two physicians, both of whom have personally examined the individual and at least one of whom is board certified in the specialty most closely associated with the alleged disability. The certification must state that the individual is incapable of managing _________ (his/her) own finances, regardless of cause and regardless of whether there is an adjudication of incompetence, mental illness, or need for a committee, conservator, guardian, or other personal representative. No person is liable to anyone for actions taken in reliance on these certifications or for dealing with a Trustee other than the one removed for disability based on these certifications. C. Trustee . The "Trustee" shall include each Trustee, Co-Trustee, and any successor Trustee. D. Tax-related terms. All tax-related terms shall have the same meaning that they have in the Internal Revenue Code of 1986, as amended. E. Copies. There is only one signed original of this trust instrument. Anyone may rely on a copy of this trust instrument certified by a notary public or similar official to be a true copy of the signed original (and of any amendments) as if that copy were the signed original. Anyone may rely upon any statement of fact certified by the person who appears from the original document or a certified copy to be a Trustee. F. Number. Whenever the context requires, the singular number includes the plural and the plural the singular. G. Applicable law. This trust shall be governed by and construed according to the laws of the state of ___________________. WITNESS our signatures as of the day and date first above stated. ____________________________________ (Grantee) By:_______________________________________ _________________________ (Name and Office in Bank) (Grantor) Acknowledgments (form of acknowledgment may vary by state) Attach Schedule A