income trust

If you have a significant income, especially when combined with a spouse, have recently inherited substantial money or are selling appreciated assets, you may want to discuss short and long-term financial planning with an estate planning lawyer. A split interest income trust could support you as well as a chosen charity.

This is especially important for California residents who may face combined marginal tax rates of over 50%. When selling property, taxes on capital gains can absorb as much as 1/3 of sale proceeds. By looking at tax saving strategies and investing them appropriately, this can lead to substantial long term returns for the family. Plenty of tax planning structures involved charitable structures.

A split interest income trust creates a trust for the benefit of charity that comes with an income tax deduction. It also provides income to you over the course of your life, or you can add in your children over the course of their lives, with the remainder in the trust being given to your chosen charity upon the death of the last-named beneficiary.

This can also generate substantial charitable deductions when done properly but should only be created and funded with the assistance of a qualified estate planning lawyer.

Our Pasadena estate planning lawyers regularly work with people who want to achieve multiple goals through their plans, including providing assets for future generations, documenting specific medical or financial wishes, or making gifts to charity.

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