Trusts are useful estate planning devices that allow New Yorkers to pass their property to others without the burdens and costs of having it go through probate. While it is often the case that individuals set up trusts to support themselves and their family members, from time to time estate planners wish to benefit charitable organizations through their end of life planning. In this capacity, charitable trusts can be helpful to implement.
A charitable trust is a trust that benefits a charity. They are often set up as charitable remainder trusts. Under this scheme, a trust creator may establish a trust through which their needs are taken care of during their lifetime. Then, when they pass away, the remainder of their trust would be passed onto the charity that they have named.
Charitable trusts can help estate planners meet many of their goals. Aside from allowing their generosity to have an outlet in their end of life planning, charitable trusts may have positive financial outcomes as well. When estate planners establish and use charitable trusts they may reduce the overall size of the estates and avoid some of the taxes that may be imposed on larger collections of assets and wealth.
Choosing a charity to benefit through a charitable trust may be a special process for an individual who wishes to give through their end of life estate. When it comes to creating such a trust, however, estate planners can benefit from seeking legal guidance and support. Estate planning attorneys can help individuals ensure that the requirements of their trusts are met so that they effectuate the estate planner’s wishes and desires.