Los Angeles Charitable Trust Attorney

What is a charitable lead trust?

The purpose of a charitable lead trust is to lower the taxes on the estate that is left by the deceased individual. This can be accomplished by donating to charities from the estate until all of those taxes have effectively been reduced. After donating a portion of the trust's income to charities, the beneficiaries' taxable income will be reduced. Once this is finished, the estate can be transferred to the beneficiaries who will then benefit from lower taxes. If you believe that a charitable lead trust is appropriate for your circumstances, speak with our Los Angeles trust attorney from the Law Offices of David A. Shapiro, P.C. at your earliest convenience!

Advantages of a Charitable Lead Trust

The charitable lead trust is an irrevocable and split-interest trust. The donor will be able to select a charity of their choice to obtain funds from the trust for a set term. The charity will then benefit from receiving a stream of income from the trust. The assets of the trust will be invested and managed by a trustee who will have the assets transferred to the beneficiary at the end of the term. The assets that are given to the non-charitable beneficiary will then be federal gift and estate tax free.

As the donor, you continue to further the work of a charity that you believe in, whether a research institution, hospital, arts group, human rights organization, animal welfare organization, and many others, even after you have passed away. These trusts often last 10 to 20 years or can be specified to last as look as another individual's lifetime. The charity can be benefited with a donation each year. If you are to pursue a charitable lead trust, you will need financial and legal advice from an experienced Los Angeles charitable lead trust lawyer. Contact our firm today for more information!

What is a charitable remainder trust?

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 value annually
  • Charitable pooled income fund: enables many different donors to contribute

There are many potential benefits to be enjoyed with a charitable remainder trust, and a Los Angeles trust litigation 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

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 a Los Angeles trust lawyer at our 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. Call today for more information.

Follow Us On