Charitable giving is the act of donating to a charitable cause. It can be done both in life and in death, and it is most commonly done via a will or trust. Charitable giving serves the dual purposes of helping a charitable cause and giving the donor and their heirs a significant tax break.
A charitable trust is like any other trust, in that it is a property interest held by one person for the benefit of another. The only difference between a charitable trust and other types of trusts is that a charitable trust is always irrevocable. Once you establish a valid charitable trust, you cannot revoke the trust and reclaim your property interest. The most common type of charitable trust is a charitable remainder trust.
Establishing a charitable remainder trust is a relatively simple thing to do. The following is a general guideline of how you can set up a charitable remainder trust and how it functions after it has been created:
There are several tax advantages to creating a charitable trust:
You should always contact an estate lawyer to plan the distribution of your estate. Lawyers understand the tax implications of estate planning, and will guide you through the difficulties associated with drafting wills and trusts. A lawyer will also help explain charitable giving, and how best to draft charitable trusts.
Last Modified: 05-21-2018 12:10 AM PDTLaw Library Disclaimer
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