Charitable trusts are a way to manage your finances, support your family, and contribute to causes you care about, like giving to a ministry, foundation, charity, etc. Let's break down how this works, focusing on the Charitable Remainder Trust (CRT).
A Dual-Benefit Tool:
The CRT is a special kind of trust that helps you and your chosen charity. It's like a financial plan that serves two purposes – supporting your family and your favorite charity.
Income for Your Family:
You can set up the trust to provide regular income to your family for life or a certain number of years.
Later Benefit for Charity:
After the income period ends, whatever is left in the trust goes to the charity you've chosen (like Joseph Prince Ministries).
Transfer Assets into the Trust:
You move assets (like stocks, cash, or property) into the trust. This transfer is irrevocable, meaning once it's done, you can't take the assets back.
Choose a Trustee:
This person or entity will manage the trust, following the rules you set.
Receive Income:
The trust pays out income to you or others you've named, for a lifetime or a set term (up to 20 years).
Charity Gets the Remainder:
After all the income payments are made, what's left goes to the charity.
Income for Life:
It can provide a steady income stream for you or your family.
Tax Advantages:
You might get an income tax deduction, pay less in capital gains tax, and it can be helpful for estates facing federal estate taxes.
Supporting Charity:
At the end of its term, the trust benefits a charity, continuing your legacy of support.
Discuss with Advisors:
It's important to talk with financial or legal advisors about how a CRT fits into your overall financial plan, especially regarding taxes.
Long-Term Planning:
A CRT is a long-term commitment, so consider how it aligns with your future goals and charitable intentions.
Creating a Charitable Remainder Trust can be a smart financial move for those looking to support their families and contribute to meaningful causes. It offers financial benefits to you now and extends your impact on the charities you care about later. It’s a way to balance personal financial health with the joy of giving.
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