What Is a Charitable Trust?

At the Davidson Law Group, we offer professional, knowledgeable, and comprehensive help in estate planning, wills and trusts, probate and more. One of the services we offer is guidance in setting up charitable trusts. But, what is a charitable trust?

If you have just begun to explore your options and are looking for a wills and trusts attorney, you might be unfamiliar with much of the terminology that you will come across. The probate lawyers and attorneys at Davidson Law Group are here to educate you and give you the foundation you need to get started.

Peace of Mind Through Philanthropy

Sharing and giving is one of the most important elements of our shared human experience. Setting up a charitable trust allows you to give even after you have gone, knowing that you have established a legacy through giving. What you leave your beneficiaries means that your absence will not leave them without security and support, and is a great way to know you will have a lasting impact.

Flexible Options

Depending on who you are leaving your trust to, you will have some flexibility in how you do it. You have the option to leave a charitable trust to secure yourself, your heirs, or charitable organizations and causes. They can be set up depending on the needs of the beneficiary, gifted to more than one entity, and funded with different assets – stock, real estate, business interests or cash.

Making Your Final Wishes Clear

As with writing your will, setting up a trust is a way to ensure that your wishes for what happens to your assets when you are gone are set. This way, you have no cause to worry about what will happen, and can reduce potential stress or uncertainty for heirs or family members.

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Charitable Deductions

As with other types of charitable giving, a charitable trust has tax benefits for the donor. While not tax-exempt, a trust will allow a charitable contribution deduction and a sometimes significant saving of estate and income tax. This is something that you can clarify with your estate planning attorney when the time comes.

Lead or Remainder?

Before you set up the trust, you should also be aware that there are two main types.

Lead

A charitable lead trust is set up to give a portion of the assets to charity for a set period of time – typically until the taxes on it are reduced – after which the remainder will go to specified trust beneficiaries.

Remainder

A charitable remainder trust is an effective way of estate planning, and functions as an income derived from asset value. There is also the charitable remainder annuity option, which can provide income to a non-charitable beneficiary.

For the finer details of charitable remainders and lead trusts, talk to a professional estate planning attorney from Davidson Law Group.

Related Post: Charitable Trust: Why Should I Consider One?

Contact Us for Charitable Trust Information

If you are looking for professional help in setting up your charitable trust, or are looking for a probate attorney, contact Davidson Law Group today. We have experience in writing and arranging wills and trusts. We can help make sure you establish your Texas legacy. Contact us in Fort Worth, Allen, or Tyler