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
- You are allowed to receive funds from your charitable remainder trust during
- 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
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