Charitable remainder trusts offer a way to create tax benefits now, income in the future and a charitable gift when the person receiving the income passes. Most assets can be used to establish a charitable remainder trust including cash, stocks, bonds, mutual funds, or real estate. Specifically, when the trust is created:
- An immediate tax receipt is generated.
- The income from the asset may be assigned to the person of your choosing.
- The asset rolls to the charity of your choice after the income beneficiary passes.
This is an excellent vehicle to use when you have an asset that you wish to gift to a charity, but you or a loved one requires income from the asset. Charitable remainder trusts can be setup at any time or established in your last will and testament.