Charitable Living Trust Estate Options

Leave Part Or All Of Your Estate To Charity With A Charitable Living Trust

There are many who do not understand the magnitude of options available to them when they are working on planning their estate. Out of the options that are available, you can select from a will, living trust, and various other estate planning options. Within the options of a living trust, there are several living trusts to explore. One of the best options you can consider if you are looking to give much of your assets to a charity is to establish your own charitable living trust.

What this means is that you establish a living trust that is designed to assist in funding a charity. Whether you create a new charity, or just use your living trust to help fund an already established charity is up to you. Either option is acceptable for legal purposes, and there are several benefits to choosing a charitable living trust. For example, while most living trust have a time limit that they are bound to, charitable living trust are exempt from the time limit.

This in essence means that as long as the trust has assets, it can continue. In contrast, a typical living trust would require a specific time frame for it to completely pass all assets onto the beneficiary, or if so selected beneficiaries. This is something that is a major benefit for charitable living trusts. Other benefits include the ability to replace a charity with another charity if the original intended charity is no longer available.

While no one wants a charity they are giving money to, to fail it does occur at times. Using a charitable living trust allows the money that is ear marked for a failed charity to be moved to another charity that is approved, and of the same type and quality of the original intended charity. A traditional living trust does not allow for such substitutions to be made.

While most trusts are organized for the purpose of a beneficiary, a charitable living trust is organized for the purpose of benefiting a charity. This allows several charities to be selected. Each charity can have a different set of disbursement schedules, all while enclosed within the same charitable living trust. As you can see, if your primary goal for some of your assets is to give to charity, a charitable living trust is one of the best options you have to explore.

With the wide variety of charities available, you want to ensure that your money is safe and protected and can be put to good use if the charity you select is no longer around years from now. Each grantor has the ability to determine what percentage of their trust to give to each charity, so you still retain a great amount of flexibility. This is something that is very encouraging when you are looking into your estate planning options.

Another great benefit to a charitable living trust is that you may be able to experience a great amount of savings from income taxes. Consult with an accountant that is knowledgeable about charitable living trusts, to determine exactly what type of deductions you may be entitled to. There are some who are able to experience very large amounts of deductions since the assets are given to a charitable living trust. This can equate to a substantial increase in the assets for some, and is well worth the effort and time required to set up the living trust.

If you are considering leaving part of your estate to charity, then a charitable living trust may just be the best option that you have. Consult with an accountant, as well as a licensed attorney to determine exactly what your options are, and how to best suit the living trust to your needs and wishes. With some work, you will be able to help the charities that you desire, and still ensure that your assets are protected.