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 a 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: 02-04-2015 12:11 PM PSTLaw Library Disclaimer
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