Charitable Trusts
If you have philanthropic objectives and wish to donate to an organization while also receiving tax benefits, charitable trusts are a great vehicle for you to utilize. A charitable trust is an irrevocable trust established by an individual to contribute assets or property to a charitable organization, including money, stocks, real estate, cars, or other valuables, as well as to non-charity beneficiaries.
There are many benefits to establishing a charitable trust, such as benefiting positive initiatives and charities, preserving your own beliefs and values, sharing your good fortune with others, as well as reducing income and estate taxes while diversifying your investments and additional income.
There are two main types of charitable trusts, charitable lead trusts and charitable remainder trusts. Charitable lead trusts are a good option when you don’t need a set amount of additional income for yourself and your primary goal is to donate money. This trust gives a set amount of the trust’s income to a charitable organization and then the remaining income either goes to the grantor’s beneficiaries or remains in the trust. On the other hand, a charitable remainder trust makes payments the opposite way of the charitable lead trust. Income from the charitable remainder trust goes first to the beneficiaries in a set amount, and then the remaining income goes to the charitable organization.
There are several other types of charitable trusts, and Wall Street Alliance Group is ready to work with you to find the best fit. Charitable giving can be a benefit to your community and also to you and your family. If you’re considering a philanthropic aspect to your estate planning, we are happy to help you find the type of trust that matches both you and your family’s needs and your desire to give back.
