A Charitable Trust in Your Will?

A charitable gift from your will can be postponed until after the life of a person you wish to benefit – that is, a family member can receive lifetime income from the bequest property, and only later would any remaining funds be used to advance our programs. This plan can be accomplished by means of a charitable remainder trust or a bequest for a charitable gift annuity. Both techniques will produce estate tax charitable deductions. A “deferred bequest” can be made through any form of trust if an estate tax charitable deduction is not needed by your estate.

Why would our supporters be drawn to a “testamentary” charitable remainder trust or similar arrangement? A mother might want to leave something for our benefit at death, but hesitate for fear children might be disappointed if they did not receive 100% of her estate. Testamentary charitable remainder trusts let donors say to children: “You will receive everything from my estate, but as to part of it you will receive a lifetime income, with later benefit to a worthwhile cause.” A key selling point: potential tax savings for the family. For individuals who don’t have the estate tax marital deduction, testamentary trusts arguably can leave family members better off than if no charitable bequest had been made.

Testamentary charitable remainder trusts also offer the practical benefits of trusteeship for family members and others who need professional investment and money management. Additionally, donors may find testamentary charitable remainder trusts an ideal way to memorialize the life of a spouse, a family member or their own lives. Call our office for more details.

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