As individuals plan for their estate administration, they may set up trusts. These trusts can be given to a beneficiary. There are various trusts that individuals can set up. Each trust may have different benefits, including tax benefits. If you happen to be a charitable person that contributes to charities on a regular basis or takes part in community service, you may wish to continue to help out charities after you pass. To do this, you have the option of setting up a charitable trust to continue to donate money to causes that are near and dear to your heart.
How do I set up a charitable trust?
You can include in a will what foundation you wish to donate to or you can include it in your trust so that money can be given to the foundation of your choice. There are other trusts that can be set up specifically for charitable giving to benefit these companies. Charitable lead trusts and charitable remainder trusts are two options that can help you reach your goal of being philanthropic. Over a period of time, charitable lead trusts are given to your chosen charities in portions. After a specific period of time, what is left in the trust goes to your beneficiary. This may remain tax-free or with significant tax savings. Charitable remainder trusts are set up differently. After these trusts are set up, a stream of income goes back to the creator of the trust or a designated beneficiary. Upon death of the individual, the assets that remain go to charity.
Often times, people overlook that their life insurance policies and retirement plans can be used for charitable giving. These are money sources that can be used in charitable trust plans. Retirement plans can have tax attributes that may make it a better choice for charitable giving rather than something already in your estate plan. Charities that qualify do not pay tax on gifts that come from retirement funds. If you are 70 years old or older, there may be tax provisions that you should review when deciding your gift to charity. By donating to a charity, you are doing a kind deed. Setting up these trusts is a wonderful thing to benefit others that may be in need.
Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Office of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.
