Nevada residents may be interested in understanding more about the benefits and process involved with creating a charitable trust. These trusts allow individuals to donate significant funds to certain charities without diminishing the wealth held in personal banking accounts. Estate owners may consider using a charitable lead trust or a charitable remainder trust. Many estate owners wait to secure college tuition and retirement savings before using discretionary income to fund charitable trusts.
Charitable trusts may be ideal for people who recently received an award from a settlement or an inheritance. In addition, people at the retirement age have frequently made use of these trusts, and business professionals in the height of their earning career may invest in these charitable trusts as a part of a strategy to obtain a more favorable tax base going forward.
The devices often provide individuals with substantial flexibility, but they may not be dissolved. The charitable lead trust provides charities with interest from the gift for a period of one to two decades. After the predetermined timeframe ends, the remainder of the trust is distributed equitably to any beneficiaries named to the trust or the grantor. People who have substantial wealth and appreciating assets might consider the benefits of using these types of trusts. The charitable remainder trust is designed to distribute an interest payout to the donor on an annual basis before the remainder of the asset transfers to the appropriate charity at the end of the term.
Anyone interested in setting up a charitable trust may benefit from consulting legal counsel. Lawyers may be prepared to review the estate owner’s financial standing and help determine which type of charitable trust would be advantageous in supporting their long-term interests and aspirations. Legal counsel may also be able to design the trusts so that they safeguard successors’ future prosperity as well.