Once it is established, a charitable remainder annuity trust or a charitable remainder unitrust is irrevocable. This means that a donor no longer has access to the trust assets.
Although many donors establish charitable trusts during their lifetimes and thereby enjoy the several tax and income benefits, some people are unable to do that. Being charitable, however, and wanting to provide for a spouse or children, they might consider establishing a testamentary charitable trust.
How It Works
A testamentary trust is one that does not take effect until after your death. You can keep all your assets in your name as long as you live, then your trust will be funded by the terms of your will after your lifetime. And because you can change your will at any time, you can also change the terms of the trust as they are outlined in your will.
The trust can be funded with the residue of your estate, a percentage of the residue, a specific property or a fixed dollar amount. Your attorney can draft the provisions in your will following your instructions.
What are some good situations for setting up a testamentary trust? One spouse might consider establishing a testamentary charitable trust to ensure that the surviving spouse continues to enjoy the income from an asset that will someday go to Kappa Alpha Order Educational Foundation. Or parents may want to provide lifetime income for their children with an asset, but also want a charitable organization like KAOEF to receive a substantial gift.
Find Out More
A trust in your will can protect your family and your money. It can also help you avoid taxes. And it can make certain your estate benefits the individuals and charitable organizations you prefer. For more information, please contact Erik Showalter at 540-460-1401 or 540-463-1865 or eshowalter@ka-order.org.
Click on the icon to request a FREE guide to charitable remainder unitrusts.
The information in this Web site is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income tax include federal taxes only. Individual state taxes and/or state law may impact your results.
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Click on the icon to request a FREE guide to charitable remainder unitrusts.
