Using Charitable Trusts in Your Estate Plan
Charitable trusts are used for many different reasons and purposes. On a more personal level, a charitable trust can be a reflection of your values and of who you were, long after your physical existence has come to end. On a more practical level, it can be an effective way of reducing estate taxes at death. Whatever your goals, the attorneys and staff at Matlin & Associates, P.C. can help you achieve them.
Different Ways to Set Up Charitable Trusts
Charitable Remainder Trust
A charitable remainder trust is an instrument that allows the donor to receive income from the assets in the trust for the remainder of his/her lifetime or a family member's lifetime or a set period of time, up to twenty years.
Net Income with Makeup Charitable Remainder Trust (NIMCRUT)
A NIMCRUT is one kind of charitable remainder trust which provides for income to be delayed for use in later years. Often, NIMCRUTs are funded by tax-deferred annuity contracts that postpone income until called for.
Charitable Lead Trust
A charitable lead trust works in the opposite way of a charitable remainder trust in that the charity or charities you designate receive the income for a period of time at the end of which beneficiaries receive the assets from the trust.
Pooled Income Trust
Pooled income trusts are some times offered by larger charities. Numerous donors transfer assets to the trust and receive a percentage of the income rights depending upon the amount of assets donated. This instrument allows donors to receive income during their lives. The charity receives the assets at death. It's ideal for someone looking for the advantages that large donors enjoy without a large commitment or extensive lawyer involvement.
Family foundations can be a tool that not only benefits society as a whole, but also invaluably benefits family members who work together in establishing and running the foundations to fund projects that they believe contribute to the greater good.
If you live in the Chicago or Lake County area, and need an experienced Trust attorney, please contact Matlin and Associates.
Types of Trusts We Establish:
- Estate Planning
- Probate & Trust Administration