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3 benefits of a charitable trust

On Behalf of | Jun 10, 2024 | Trusts

Charitable trusts offer a unique opportunity to support the causes you care about while also providing significant benefits to your estate and your beneficiaries. When your legacy and personal preferences matter to you, a charitable trust could provide the flexibility that you need.

Understanding the benefits of a charitable trust can help you consider its value in your estate plan.

Crafting your legacy

One of the most significant advantages of a charitable trust is the ability to support the charities and causes that matter most to you. Your trust provides ongoing support to one or more charities, creating a lasting impact on the organizations and communities you care about.

Minimizing estate and gift taxes

Another benefit of charitable trusts is their potential to reduce your estate and gift taxes. When you transfer assets into a charitable trust, you may qualify for a charitable deduction on your income taxes. Additionally, the assets in the trust do not count in your taxable estate, which reduces the amount of estate taxes your beneficiaries owe upon your death.

Maintaining control over your assets

A charitable trust allows you to maintain a degree of control over the assets you donate. With a Charitable Lead Trust, for example, you can specify the amount and duration of payments made to your chosen charities, with the remaining assets reverting back to your beneficiaries after a set period. This allows you to support your favorite causes while ensuring that your assets get distributed according to your wishes.

The right estate plan is a highly personal decision. When you want to make a difference even after your death, a charitable trust offers options. Consider these benefits as you build your estate plan and determine the legacy you wish to leave behind.