Many individuals choose to donate to charity throughout their lives, always ready to lend a helping hand through finances in Baton Rouge, Louisiana. You can choose to continue to give even after you pass, however, through a charitable trust. If you want to start a charitable trust while estate planning, continue reading below to learn how and for a couple of options.
Setting up a charitable trust
When estate planning with your attorney, begin to discuss this idea behind a charitable trust. The trust will involve certain liquid assets that you sign over to a charity of your choice. The charity holds those assets to use as they see fit, using the interest for the charity’s purposes as well.
Charitable remainder trust
The first type of charitable trust you can set up is a remainder trust. There are several benefits such as:
- A deduction on taxes
- A deferment on capital taxes and income taxes
- Assistance for your favorite charity
To start this trust, you must be 60 or older and must not have children. This is a great option for a business owner or for a high-income individual.
Charitable lead trust
The second type of trust to choose for your estate planning is a charitable lead trust. Benefits of one of these types include:
- Tax benefits
- Funding for the trust by the grantor method
- A zero-out function
Any assets that go to the charity are gifts under a charitable lead trust. It does still count as a deduction on your taxes, however.
If you are someone who wants to help your community, consider a charitable trust. By working out one of these in your estate planning, you will help the community for the foreseeable future. Your lawyer can assist you in the setup of this trust for you.