Trusts can be set up for your own individual circumstances and for the benefit of your future heirs, but you might also wish to pass assets on to a charity you support. A charitable remainder trust is the most common type of charitable trust.
The first stage of this is to sit down with a Pasadena estate planning lawyer to set up a trust and to transfer inside that trust any property that you intend to donate to charity. The internal revenue service must have approved of a charity in order to meet the terms of a charitable trust. This means that the charity must be exempted from paying taxes. The charity becomes the trustee of any CRT you create and is, therefore, responsible for protecting, investing, and managing trust funds.
If income is generated by the trust, the charity will create a payment to you for the portion of that income. Typically, you can set this up for the remainder of your life or for a set number of years and the trust ends at the time of your death. At that point in time, the property that you donated will go to the charity.
No matter what kind of planning you intend to use, passing on assets to a charity is one way to support a cause you care deeply about. There are complicated aspects of choosing what vehicle you want to use when support a charity, so it’s recommended that you sit down with your Pasadena estate planning lawyer so you can discuss what you hope to accomplish and how you’ll get there.
You can get support from a knowledgeable lawyer as soon as you need.
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