Consider Charity
With the end of the tax year coming up, many people are starting to think about how to reduce their taxes and maximize their tax refund for 2010. One way that people have found to reduce taxation is through charitable giving. An experienced Los Angeles estate planning attorney may assist you to set up a charitable trust. A charitable trust is a trust that is created for the benefit of the community at large rather than an individual person.
The most common type of charitable trust in the United States is a Charitable Remainder Trust ("CRT"). In a CRT, the charity serves as trustee of the trust, and manages or invests the property so it will produces income. The charity pays you a portion of the income generated by the trust property for a certain number of years, or for your whole life. The term of payments depends on the payment period you select. Then, upon your death, the property held in trust goes to the charity.