When you reach a certain level of wealth and want to leave something behind, it’s possible to create a trust that provides valuable assistance to your favorite charity, generates income for your beneficiaries, and also acts as a tax break. Your Lincolnshire charitable giving attorney can help you decide the best course of action to meet your giving goals. Keep reading to find out more about two trusts that can help you accomplish them.
Charitable Remainder Trust
A charitable remainder trust (CRT) is an unbreakable trust that creates income for you and your beneficiaries. Surplus revenue is funneled to your specified charity. Charitable trusts give you flexibility over your intended charitable beneficiaries. It can also provide you with an income source to help you with estate planning and tax management.
Your Lincolnshire Charitable Giving Attorney can help you set up a charitable remainder trust. This type of trust is known as a split interest giving vehicle since you can make contributions and receive a tax deduction based on the CRT’s assets moved to the charity. You name yourself or another person to receive set revenue for a number of years (20 is the maximum). Then, you name a charity to get the remainder as a donation.
Charitable Lead Trust
A charitable lead trust (CLT) is the opposite of the charitable remainder trust, and the income is first paid to charity with private individuals getting the remainder. A CLT is an estate or gift tax tool to keep more of your money in your estate.
It reduces taxable income for beneficiaries by first giving to charities and then, after a few months, moving the remainder to your beneficiaries, who should be able to reduce their tax burden with this strategy.
If you want to do the right thing and leave money behind to support your charitable causes, there’s no reason you can’t do it in a way that also benefits your beneficiaries and yourself. Your Lincolnshire Charitable Giving Attorney can help you make it happen it with the best possible outcomes.
Orlowsky & Wilson, Ltd. serves the Chicago area. They offer business law and estate planning to individuals and businesses throughout Illinois. One of their areas of expertise is charitable giving that generates income.
