A charitable trust is a tax designed irrevocable trust, which provides payments to a beneficiary or multiple beneficiaries for life or a designated period of time, then pays a charitable organization. A charitable remainder trust will pay the beneficiary first, with the remaining amount going toward charity. This makes the trust a charitable entity, exempting it from paying income or capital gains taxes. The gift toward the trust qualifies for an immediate income tax deduction based on the value of the gift toward the charity. The portion of the trust going to charity qualifies for a charitable estate tax deduction when it transfers.
Speak with your attorney to see if a charitable remainder trust gift could work for you, and direct any questions to Director, Stephen O’Grady, at 508-255-0183 or email@example.com.