When deciding that you’d like to begin the estate planning process, you may want to give back to the organizations and charities that mean so much to you. Gifting assets is a charitable action, and as such, there are trusts you can establish to help ensure that these beneficiaries can reap the full benefits. Using a charitable trust, a Rockland County trust attorney can help you through this process. Keep reading to learn more about the advantage of setting up a charitable trust.
What Is a Charitable Trust?
Though they seem similar, there are immensely different benefits between setting up a personal trust and a charitable trust. Personal trusts are beneficial for those who want to benefit an individual or individuals.
Charitable trusts, on the other hand, are created for a specific reason. This is to give back to an organization or charity you hold near and dear to your heart. There are two kinds of charitable trusts that you may want to consider setting up – lead and remainder trusts.
Charitable lead trusts are established in such as way that they will benefit a charity for an elapsed period of time. Once this period expires, the remainder of the assets will be distributed to beneficiaries named in the trust. A remainder trust functions in the opposite way. These trusts, once established, will provide an income stream to the creator or beneficiary until the creator has passed. Upon the death of the creator, the assets remaining in the trust will be distributed to the charities listed in the trust.
What Are the Benefits of Gifting Assets in New York?
There are several benefits to gifting assets using a charitable trust. The most notable is that you can give back to charities you deeply value while taking care of loved ones after your passing.
However, there are several additional benefits. For example, you may discover that holding assets in a charitable trust helps avoid capital gains tax, as these items do not depreciate in value. Similarly, it can be beneficial for tax purposes on your estate to place certain assets in a trust.
Some of the most considerable benefits come from the fact that a charitable donation of up to $17,000 per year will not require you to file a gift tax return or count towards your lifetime exemption. For married couples, this amount increases to $34,000.
If you are ready to establish a charitable trust to give back to the charities you appreciate, you must enlist the help of an experienced attorney to walk you through this process. At the Lauterbach Law Firm, we have the experience necessary to help you navigate setting up a trust. Contact us today to learn more about how we can assist you.