There are certain advanced estate planning tools that enable individuals to satisfy multiple objectives at the same time. One of these is the charitable remainder unitrust or CRUT.
Many people would like to leave something behind to charity after they pass away. There are a number of different ways to do this, and you can explore all of your options by setting up a consultation with a good estate planning lawyer.
When you speak to an attorney, you will learn about charitable remainder unitrusts.
The first step is to fund the trust, and you then decide on the term during which you will receive annual annuity payments equal to between 5% and 50% of the fair market value of the assets that have been conveyed into the CRUT.
If you choose a fixed term it cannot exceed 20 years, but you can alternately choose to keep the trust active until your passing and receive annuity payments for the rest of your life.
A minimum of 10% of the value of assets that have been conveyed into the trust must remain at the conclusion of the trust term. When you are drawing up the terms of the trust you name a charitable beneficiary. This beneficiary will assume ownership of the assets that remain in the trust at the time of your death or upon the expiration of the term.
From a tax perspective, you get a deduction based in part on the amount of money that the charity will be receiving eventually. You are reducing your estate tax exposure when you shift funds out of your estate and into the trust. Additionally, you can take steps to defer your capital gains responsibility if you convey appreciated securities into the trust.
Latest posts by Litherland, Kennedy & Associates, APC, Attorneys at Law (see all)
- Planning for Education Expenses - October 15, 2019
- New California Law Impacts Caregivers Who Marry a Dependent Spouse - October 10, 2019
- Planning for Special Needs Children - September 26, 2019