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Advanced Estate Planning

Charitable Remainder Trusts

Helping Clients Protect Their
Wealth and Provide a Better Future

Considering your own death is never a cheerful prospect. However, planning now for that inevitable event can make a huge difference for your loved ones when you pass away, including preparing your estate plan. One powerful tool to avoid unnecessary estate taxes is setting up a trust. The trust owns the trust assets, insulating you and your loved one from extensive taxes that would eat away at your estate.

One type of trust that many people find helpful is the charitable remainder trust. Charitable remainder trusts pay the trust beneficiaries a set amount during your lifetime, after which the remaining assets are paid to a charitable organization of your choice. These trusts allow you to provide a lifetime of security for your loved ones and participate in charitable giving, leaving a legacy of generosity. Charitable remainder trusts are irrevocable, so it is essential to consult with California estate planning attorneys before creating a charitable trust.

At The Singh Law Firm, we are passionate about helping individuals and families prepare for the future, including creating charitable trusts. We understand that protecting your family and wealth are among your top priorities, and we will help you gain the tax benefits and estate protection you need through legally sound estate planning documents. If you need help deciding whether a charitable remainder trust is suitable for you, or if you are ready to set one up, please reach out to us at 510-901-5375. We offer a free consultation, so there is nothing to lose by talking to our charitable remainder trust attorneys today.

What is a Charitable Remainder Trust?

Trusts are extremely important estate planning tools because they offer a wide range of flexibility. For example, even within charitable trusts, there are various ways to set up the trust depending on your goals and values.

Some examples of different types of charitable trusts include:

  • Charitable remainder trust—The charitable remainder trust, also known as a charitable remainder annuity trust, provides financial security for the donor by paying out interest over the life of the trust and donating the remaining assets when the person dies.
  • Charitable lead trust—A charitable lead trust works in a similar way but pays the charitable organization while the person is living, with the remainder paid to beneficiaries after the grantor’s death.

If you are considering a charitable remainder trust as part of your estate plan, please contact our legal team for assistance. We can help you identify the best method of asset protection for your unique situation, including how to maximize your charitable gifts and minimize estate taxes. We will explain how charitable remainder trusts work and analyze your estate to create a plan that matches your estate planning goals. Call now for a free consultation with our skilled legal team.

What Are the Benefits of Including a Charitable Trust in My Estate Plan?

Creating a California charitable trust can be valuable to your estate plan. These trusts offer a potential income stream for the trust creator since the grantor can be named as a non-charitable beneficiary of the trust’s income. At the same time, you can protect your family from having to pay estate taxes because the trust assets are technically owned by the trust rather than being a part of the estate itself.

Charitable trusts can also be flexible. For example, if you choose a charitable remainder annuity trust, you can specify the amount that beneficiaries receive per year. Alternatively, you could create a charitable remainder unitrust that distributes a fixed percentage to beneficiaries each year.

Finally, charitable remainder trusts allow the owner to sell appreciated assets without having to pay capital gains tax. This is an incredible opportunity for many individuals who own real estate and other assets, which results in a high capital gains tax. Reach out to our attorneys about creating a charitable trust that works for your goals and needs.

What Are the Limitations of a Charitable Remainder Trust?

There are some limitations of charitable trusts. For example, these trusts are irrevocable, making them extremely difficult to change once they are created. This also means that contributions you make to the trusts are irrevocable. Depending on the terms of the charitable trust, you may or may not be able to add or change beneficiaries at a later date.

To fully understand the risks and benefits of a charitable remainder trust, please contact our knowledgeable legal team right away. We can help you identify whether this type of trust is right for you and help you maximize your income tax deduction while expanding your potential income.

How Can an Estate Planning Lawyer Help Me with My Charitable Remainder Trust?

Charitable remainder trusts, including charitable lead trusts, charitable remainder annuity trusts, and charitable remainder unitrusts, are complex documents that offer a great deal of benefits. However, creating a trust carries some risks. When dealing with high-value assets, you should be sure that this is the right step for you and your family.

An attorney with experience in trusts and estate planning, like those at our law firm, can help with various aspects of your trust, including:

  • Helping you pick a non-charitable trust beneficiary, including naming yourself or surviving spouse as the designated beneficiary
  • Determining which non-profit organization makes sense for you to include in your irrevocable trust
  • Developing a trust agreement that has terms that match your goals and wishes
  • Determining whether you have enough assets of the proper category to justify this type of trust
  • Ensuring you receive the maximum income stream
  • Helping you avoid the capital gains tax if you need to sell assets from your trust

Should You Hire Our Charitable Remainder Trust Lawyers?

Many clients who are looking for an income tax deduction choose charitable trusts to decrease their tax burden while maintaining a stream of income while they are alive. Our team of attorneys is dedicated to developing the right plan for you and your family. We are honored to help clients give to charitable organizations while providing income for one or more beneficiaries during the client’s lifetime. We would love to help protect your estate while providing a legacy of generosity for future generations.

Please reach out to us right away to learn more about the benefits and limitations of a charitable remainder trust. We can help ensure that your chosen charity gets the donation you wish. At the same time, we can eliminate the capital gains tax burden and help you receive income during your lifetime.

We promise to answer your questions and concerns in terms you can understand so you can make the best decision for your unique circumstances. Our diverse range of clients have trusted us for over a decade, and you can rely on us to treat your case with the same level of care and dedication.

Call 510-901-5375 immediately to schedule a free consultation with our compassionate, capable legal team.