Advantages of a Charitable Remainder Trust

For many people an important part of advanced estate planning is providing funds for a charity close to their heart. If you want to use your estate plan for a bit of charitable giving, a charitable remainder trust may be a great option. This Irrevocable Trust provides many benefits to you and your estate while also helping you help others.

Save on Taxes

When you create a Charitable Remainder Trust you can save money on three different types of taxes. First, you will receive an income tax deduction for the year when you first create the trust. If you like, you can spread that deduction out over five years of income tax returns. You will also save your family money on estate taxes since an Irrevocable Trust holds items that are not part of your taxable estate. When you place assets into a charitable trust, they no longer belong to you.

Receive a Steady Income

When your items are in a remainder trust, you will still have some benefit from those possessions. The charity that holds the trust will invest your assets. In return, you will receive either a yearly set payment or a yearly percentage of the trust value. This steady income allows you to reap some of the benefits of the trust earnings. The income from a charitable remainder trust ends upon your death. At that time all funds and assets in the Trust will officially belong to the charity.

Give to Cause You Love

Charitable trusts not only allow you to save money and receive an income; they also allow you to improve your community. The funds from your Trust will continue to work to help others long after your death. For this reason, charitable trusts are a popular option in legacy planning. By choosing a charity that expresses your values and morals, you can leave a lasting impression of upon your town and possibly the world.

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Alan Augulis, Estate Planning Attorney

Mr. Augulis founded his Warren, New Jersey law firm so that he could focus his practice in the areas of advanced estate planning and tax law. Mr. Augulis has invested considerable time and energy helping to educate others on the topic of estate planning and has become a sought-after speaker in the tax and estate planning arena because of his informative and entertaining seminars.

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