Leaving a Legacy for Your Favorite Causes
Charitable trusts name charities, as opposed to individuals, as beneficiaries. If the trust complies with federal tax laws, the trustor will be allowed to deduct a percentage of the amount that the trustor gave to the charity as a current charitable income tax deduction. While there are different types of charitable trusts, if a trustor wishes to make distributions to the charity during his or her lifetime, the trust must be classified as an irrevocable trust.
Charitable trusts can be set up in a multitude of ways and often provide for an annuity or fixed amount to be paid to beneficiaries over a term of years with the remainder going to charity.
If you wish to leave your assets to charity, a charitable trust may be an excellent option. Our attorneys can discuss the different types of charitable trusts and help you create a plan that coincides with your objectives.