Orange County Charitable Trust
There are several estate planning techniques that you can use to provide an income for yourself and your heirs, while minimizing the impact that estate taxes can have on assets.
The Charitable Remainder Trust (CRT) is a type of irrevocable trust that also allows you to enjoy tax exemptions, and manage the property in a trust so it generates income for you. To set up a charitable remainder trust, you must first set up a trust that transfers the property that you want to donate to a charity within the trust. The charity must have a tax-exempt status in order for it to be the trustee.
In a case like this, the charity will be the trustee, and will invest the assets so you can enjoy a steady income stream. Any portion of income that is generated by the charitable trust is transferred to any beneficiary that you name, for a certain period of time. After this period of time passes, the property within the trust will be passed on to the charity.
You can specify how you want to receive the income payments from the trust. You can either choose a fixed annuity, in which you receive a certain amount of money each year, or you can choose to receive payments as a percentage of the value of the property’s current worth, on an annual basis. You can specify the period of time that you want your beneficiaries to continue to receive the income stream generated by the trust.
These trusts allow you to enjoy federal tax benefits and donate to a charity of your choice. An irrevocable trust like this helps you to avoid and minimize the impact of income taxes, estate taxes, and capital gains taxes.
When it comes to protecting your assets and preserving wealth for future generations, you can’t afford to make mistakes. Seek experienced legal counsel from a qualified estate-planner at Citadel Law Corporation before you get started. Call (800) 662-0882 today and set up a consultation with one of our attorneys.