Charitable Remainder Trust Planning

Experienced Estate Planning Lawyers in Springfield

Choosing a charitable remainder trust (CRT) is a wise estate-planning tool that can benefit not only the recipients of the charity, but it can also help preserve the value of your estate. This option is especially great for individuals who wish to establish a philanthropic legacy. Beneficiaries within a CRT include your income beneficiaries, usually you, your spouse or children, and the charity you select to receive the remainder of the funds. If you are interested in setting up a CRT for your estate, discuss your plan with our Springfield estate planning attorneys at Worsham Law Firm today. We can review your estate and your goals, and help you come up with a thorough charitable trust plan.

Request a consultation online or by calling (471) 658-4172.

Benefits of a charitable remainder trust include:

  • You are allowed to receive funds from your charitable remainder trust during your lifetime.
  • Income tax deduction as a result of your donations to charity.
  • The trust does not become a tax liability for your successors in the event of your death, since it is not a part of your estate.

A charitable remainder trust is subject to a time constraint. Beneficiaries are allowed use of the trust funds during that designated time frame. After the time frame has expired, all remaining funds are distributed to the designated charities.

Options for Receiving Funds from Your CRT

After you have designated a charity to receive the benefits from your trust, you then decide how you want to receive income from your trust in your lifetime. One option is to receive a designated amount each year. This is called a "fixed annuity" income, and you cannot change that income amount for the remainder of your lifetime, nor does it adjust for inflation.

Alternatively, you can receive a designated percentage of that trust each year. This has the advantage of increasing as the trust earns more money, and it does respond to inflation. Our estate planning lawyers can review your distribution options with you and advise you as to the best arrangement for your CRT income.

Contact Worsham Law Firm in Springfield to receive knowledgeable guidance for your charitable remainder trust planning.

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