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Charitable Remainder Trusts

A charitable remainder trust is a type of irrevocable trust that a person may choose to set up in order to protect his or her estate from taxes and probate while contributing to a charity and also using the property or living off income from the property while still alive. Although the trust is irrevocable, the grantor may be able to control the manner in which assets are invested and may be able to change the charity to which the donation is made, as long as it is a qualified organization. There are three primary types of charitable remainder trusts:

  • Charitable remainder annuity trust - pays a fixed dollar amount annually.
  • Charitable remainder unitrust - pays a fixed percentage of the trust value on an annual basis.
  • Charitable pooled income fund - set up by a charity, this type of trust enables many different donors to contribute.

There are many potential benefits to be enjoyed with a charitable remainder trust, and a Los Angeles trust attorney at our law firm can explain these to you in detail based upon your particular financial situation, goals and needs.

Setting up a Charitable Remainder Trust in Los Angeles

When you set up a charitable remainder trust, the assets or property you transfer to the trust will be removed from your estate, potentially reducing estate taxes significantly. Although you transferred the property, you may still be able to use this while you are still alive and may be able to receive income from it. Let an experienced estate planning lawyer at our Los Angeles law offices guide you through the process of establishing a trust that works for you. We can talk to you about how your property will be affected and can offer information that helps you make the right choices for your estate.

Contact a Los Angeles trust attorney today.

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