A charitable remainder trust is an irrevocable trust that generates a potential income stream for you, or your loved ones, with the remainder of the donated assets going to your favorite charity or charities. This strategy generates income and enables you to pursue your philanthropic goals while also helping provide for living expenses. Charitable trusts can offer flexibility and some control over your beneficiaries as well as lifetime income, helping with your retirement, estate planning and tax management.
With a charitable remainder trust you will be able to donate cash, stocks, non-publicly traded assets such as real estate, private business interests, private company stocks and become eligible to take a partial tax deduction. You can name yourself or someone else to receive a potential income stream for a term of years (no more than 20), or for the life of one or more non-charitable beneficiaries, and then name your favorite charities to receive the remainder of the donated assets.
We will be able to set up your trust so you or your stated beneficiaries can receive income annually, semi-annually, quarterly or monthly, based on your individual needs and circumstances. When the charitable remainder trust terminates, the remaining assets will be distributed to your charitable beneficiaries, which can be public charities or private foundations. Depending on how the trust is established, the trustee may have the power to change charitable beneficiaries during the lifetime of the trust.
A charitable remainder trust is a good option if you would like an immediate charitable deduction, but also have a need for an income stream for yourself or another person. There are a variety of charitable giving vehicles from which to choose from. Contact First Class Counsel to learn which is best for you and why.