Each year, Nevada residents generously support a variety of charitable organizations. These organizations provide a number of services and benefits to the community, including cancer research, scholarships for needy children and other worthwhile efforts. The majority of the benefits received from these organizations would not be possible without this generous support. As individuals look for ways to leave a lasting legacy, one option to consider is a charitable remainder trust.
In looking ahead to the future, individuals often take into consideration their own need for their personal assets as well as their beneficiaries’ needs. Then, there is also the desire to leave a legacy that will benefit others over a number of years. These considerations often lead individuals to consider various methods of charitable giving within their estate plan.
With a charitable remainder trust, the owner of the property continues to use the property or benefit from its income over the course of his or her life, or the life of another named individual. At the expiration of this term, the property or principal is then transferred to the charity. Thus, both the individual and the charity benefit from the arrangement.
One reason many Nevada residents find the charitable remainder trust to be an appealing estate planning tool is its tax benefits. An income tax credit is generated for the year in which the trust is created. This is often a period of time in which the individual’s income tax obligations are greater than in later life. Individuals interested in leaving a legacy through a charitable remainder trust will want to discuss their options with individuals experienced in this area of estate planning.
Source: charlotte.floridaweekly.com, “Estate planning and charitable giving“, Forrest Bass, May 8, 2014