While a charitable trust isn’t the right estate planning tool for everyone, it’s something you should at least consider. As you learn more about the benefits, you may come to find that it’s something you can work into your estate plan.
Here are some of the benefits that have so many people taking full advantage of a charitable trust:
- Income tax deduction. Depending on the value of the gift you plan on making to charity, you may have access to an immediate income tax deduction. For many, this is the number one benefit of setting up a charitable trust.
- Reduction of estate taxes. Once you fund a charitable trust, you don’t have to worry about these assets being part of your estate. Subsequently, they aren’t taken into consideration for estate tax.
- The feeling of doing something good for someone else. This has nothing to do with your finances and everything to do with feeling good about doing the right thing. There is no better feeling than giving money to charity, as you know that this will improve the life or situation of another person or group of people.
As you can see, there are many benefits of setting up a charitable trust. If you’re interested in doing this, you’ll want to learn more about the process for getting started and the steps to take to obtain each and every potential benefit.
It’s important to understand the many legalities associated with a charitable trust. This will ensure that you make the right decisions regarding your estate plan, all at the right time.
Source: Fidelity, “Charitable giving that gives back,” accessed Jan. 04, 2018