As you plan for your children’s future using your current investments, there are several things you may have in mind. One of your concerns may be to ensure that they do not misuse their inheritance and end up broke. You might also be thinking about how you can participate in charity work to make a positive impact on someone out there that needs help. Well, a charitable trust is one option that allows you to hit two birds with one stone.
Let’s get started: What is a charitable trust? How exactly does it address your concerns? The following post provides a basic introduction:
What Is a Charitable Trust and How Is It Used?
A charitable trust is a non-tax exempt trust that lets you donate generously to charity while gaining advantages for yourself…
What It Is
Charitable trusts offer you peace of mind while allowing you to donate to a cause you believe in. You can set up a charitable trust to secure a financial benefit for yourself, your heirs, and your favorite charitable organization. They can be set up during your lifetime or after you pass away.
Charitable trusts are somewhat flexible and can be tailored to meet the financial needs and charitable goals of you, the donor. Many donors set up charitable trusts so they can provide their families with income after they pass away. Providing a stream of income to heirs can give you comfort in knowing that your heirs will not deplete their inheritance in a short amount of time. Read more at American Bible Society…
Charitable trusts are therefore a multifaceted approach to estate planning since they cater not only for your dependents but also for the less fortunate that you may want to assist on a long-term basis.
Before taking up any financial plan, you need to examine the pros and cons of the method you select. The following post looks at some of the reasons why charitable trusts are something to consider and the different types that can be set up:
Charitable giving that gives back
How can you give to charity while providing for your family at the same time? Using charitable trusts—on their own or in conjunction with donor-advised funds—could offer you greater flexibility and control over your intended charitable contributions while helping you fulfill your philanthropic goals, and also helping with estate planning and tax management.
A closer look at charitable trusts
A charitable trust allows a donor to set assets aside for one or more charities. There are two different types of charitable “split-interest” trusts—charitable remainder trusts (CRTs) and charitable lead trusts (CLTs). These types of trusts “split” the assets between a charitable and non-charitable beneficiary. Which type you choose depends on your priorities with respect to estate planning and wealth preservation, how you want the charity to receive the gift, and even the types of assets you wish to donate. Read more at Fidelity…
Charitable trusts are a great way to achieve your goals in more than one way. Setting up one will give you the peace of mind you’ve always wanted and give you a sense of fulfillment as you give to charity.
Wondering what will happen when the trust needs to be closed once the purpose is fulfilled or for any other reason? The following post should give you an idea of how it should be done:
Winding up a Charitable Trust: Key points
When a charitable trust has been going for a long time it may be that it eventually “runs out of steam” either through the purpose having been achieved, the situation having changed or a lack of fresh volunteers to continue. What are the next steps for the board of a charitable trust in such a situation? This note sets out the key points to consider and what the steps are.
Step 1: Review what the Trust Deed says
The Trust Deed will provide guidance on what happens on the dissolution or wind up of the trust. This is a key step and is important because those rules will need to be complied with.
Usually there will be some provision that the assets of the charitable trust can only be distributed to some other trust which is also charitable. Read more at Change For Good…
The process of setting up and winding up a charitable trust should be done in accordance with state laws.
If you are in Charlotte, North Carolina and need legal assistance in your estate planning or to set up a charitable trust, Meek Law Firm is here for you. Our commitment to serving our clients beyond their expectations is what sets us apart from the rest. Call us today at (704) 848-6335 or complete the contact form on the website. We look forward to working with you.