Charitable trusts can be an essential element of estate planning. Your assets can be put to work in the future as well as proving beneficial in the present. There can be tax advantages as well.
The first consideration before putting together a charitable trust is to determine your financial objectives and your personal charitable intentions.
Who benefits from a charitable trust generally?
- Income beneficiaries are the person(s) who immediately receive periodic payments from the trust, for a specific time period or over a lifetime.
- Remainder beneficiaries will receive the income-producing assets of the trust at some future date, after the payments to the income beneficiaries have been completed.
- Another scenario for a charitable trust would be to take payments for yourself in your lifetime, and then leave a portion or all of the remainder to a charity you support to be paid after your death.
Charitable remainder trusts are only one example of trusts that carry tax benefits. However, there are other kinds of trusts that may be preferable for your particular situation.
So, if giving to charity is a priority to you, then it should be reflected in your estate planning. A charitable remainder trust can benefit your chosen cause as well as providing tax considerations. In fact, the trust can qualify for tax-exempt status should the beneficiary be a non-profit charity, as long as the payment schedule and the amount of payments satisfy IRS requirements.
I would be glad to discuss trusts as well as any other estate-planning questions or concerns you may have. Together, we can work to develop a plan that’s ideal for your needs and that can help you achieve your goals, present and future.
Just give me a call to set up an appointment, at 818.956.9200.
