Charitable Trust
Explore the benefits and considerations of a charitable trust in estate planning. Learn how it supports causes while providing tax advantages.
How does a charitable trust benefit both the grantor and the beneficiaries?
A charitable trust can be an effective tool in estate planning that allows the grantor to support charitable causes while potentially receiving significant tax advantages. By placing assets into a charitable trust, the grantor may gain immediate income tax deductions while reducing estate taxes. This trust is often set up to provide income to the grantor or other beneficiaries for a specified period, after which the remainder of the assets are transferred to the designated charity. This balance helps the grantor contribute to philanthropic goals while also ensuring some level of financial security for themselves or their loved ones during the trust’s term.
