If you are looking to begin an estate strategy of charitable giving, you really need to consider a Charitable Remainder Trust.
They deliver several excellent advantages to the wise donors that set them up.
– They allow the donor to enjoy income and gift tax charitable deductions even though the charity will not get to use or access the property in trust until the donor’s private interests expire.
– The donor still receives income distributions from the trust during the donor’s life.
– In a special kind of CRT, the donor can defer the distributions of income to allow the trust corpus to grow tax-free.
– Since CRTs are not subject to taxation, if property donated to the trust is sold, there is no tax on the gain.
These are complicated instruments and therefore, you should seek out the assistance of experienced counsel that has studied these types of trusts.
Call Westward LAW today and set up a consultation on these and other estate planning strategies.