Estate planning involves more than just deciding to whom you want to leave your assets after you pass away. It is also an opportunity to think about the legacy you want to leave. What causes are near and dear to you?
Charitable trusts can play an important role in your estate planning and tax planning considerations while providing funds for nonprofit organizations to carry out their mission. In addition to doing some good, a charitable trust reduces your estate tax bill and can potentially do so without reducing your family’s inheritance. Plus, you can enjoy the benefits of a fixed income stream with tax reduction during your lifetime.
The Albany and New York trust lawyers at Pierro Connor & Strauss, LLC can help you create a charitable trust to meet your estate planning needs while supporting the causes that are most important to you.
What is a Charitable Trust?
Per the IRS, a charitable trust is a non-tax-exempt trust with its unexpired interests devoted to charitable purposes. Charitable trusts can be set up during your lifetime or in your testamentary documents to take effect at death.
Depending on the timing of the gift and the type of trust, under specific sections of the IRS Code, a charitable gift, estate and/or income tax deduction may be allowed. Only those organizations registered with the IRS as qualified charities qualify for inclusion in a charitable trust.
As with any trust, a charitable trust is a separate legal entity. Once you place the assets in the trust, they no longer belong to you but rather to the trust.