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Is a Charitable Trust Right for You?

 Posted on November 23, 2021 in DuPage County Real Estate Attorney

IL estate lawyerEstate planning allows you to decide how your property is distributed upon your death. Whether you want to leave college money to your grandchild or pass along a treasured family heirloom, your estate plan is the vehicle through which you make those wishes a reality. However, estate plans can involve much more than leaving assets to loved ones. A strong estate plan enables you to leave a legacy while simultaneously supporting the causes you care about. Read on to learn about incorporating a charitable trust in your estate plan.

How a Charitable Trust May Benefit You

Charitable trusts are irrevocable trusts that allow an individual to leave money and property to 501(c)(3) organizations. You can bequeath money, stocks, real estate, and other types of property through a charitable trust. The beneficiary of a charitable trust may be a church or other religious organization, hospital, and school, or other not-for-profit organization.

Gifting assets to charitable foundations is one way individuals can support the causes they care about – even after they have passed away. In addition to the personal significance of donating to a charity you believe in, charitable trusts also have tax-related benefits. Charitable lead trusts reduce your income and therefore your tax liability. You may also enjoy reduced estate taxes.

How a Charitable Trust Works

Charitable trusts are irrevocable trusts. You cannot modify the trust once it has gone into effect. This is one important reason you should work with an experienced estate planning lawyer when setting up a charitable trust. When you donate to a charitable trust, you enjoy an income tax deduction. Once your property is transferred to the charity, the charity invests the property and uses it to generate income. The income generated by the trust can pay beneficiaries or the charitable organization.

Contact a Wheaton Charitable Trust Lawyer

Leaving money or other property to charity benefits you in many different ways. You gain the personal satisfaction that comes from supporting the causes you believe in. You also enjoy certain tax advantages when you utilize a charitable trust in your estate plan.

Philanthropic giving is also one way to create a lasting legacy. If you are interested in incorporating a charitable trust into your estate plan, contact a DuPage County estate planning lawyer from Stock, Carlson & Asso. LLC. Our team of skilled legal professionals can help you evaluate your estate planning goals and design a customized estate plan that accomplishes those goals. Call our office today at 630-665-2500 for a free, confidential consultation.


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