Charitable Remainder Trust

A qualified charity that you choose would get the asset upon your death, but if you plan to give it to the charity in the first place then a charitable remainder trust would give you a lot of benefits. You also get an income tax deduction for the fair market value of the remainder interest that the trust earned. The definition of a charitable remainder trust is an arrangement between a charity and a donor called the grantor where property, money, stocks, bonds, etc. is donated to a charity but the donor continues to use the property or receives income from it while living. The charity gets the balance of the money or property upon the grantors death.

When you establish a charitable remainder trust, the asset is removed from the estate, therefore reducing subsequent estate taxes. You and your spouse, if married can be the income beneficiaries. So even if one of you passed away, the other will still receive the income from the trust.

A charitable remainder trust is irrevocable but you can change the charitable beneficiaries at any time.

If you are interested in learning more about a charitable remainder trust, you should talk to a financial planner and an attorney that specializes in trusts and wills. They will be able to tell you more about the different trusts available that will help you manage your assets.