The Settlor (creator) of any trust appoints the Trustee. As the Settlor, you may anyone you choose to be the Trustee; however, given the complex nature of a charitable lead or remainder trust you may wish to consider appointing a professional Trustee. One of the most common mistakes settlor’s make is appointing a family member or close friend as their Trustee without actually considering whether or not the individual is well suited for the position. Given the duties and responsibilities of a … [Read more...] about How do I choose a Trustee for my charitable trust?
What is a charitable lead trust?
A charitable lead trust works just like a charitable remainder trust in reverse. In other words, assets from the trust are distributed to at least one charitable beneficiary for a specified period of time first. At the end of that time period, the assets remaining in the trust are distributed to at least one non-charitable beneficiary. Assuming you made a gift of $2 million to a charitable lead trust, the trust terms might direct yearly distributions in the amount of $50,000 to be made to your … [Read more...] about What is a charitable lead trust?
What is a charitable remainder trust?
In a charitable remainder trust assets are first distributed to at least one non-charitable beneficiary for a specified period of time with the remainder assets being distributed to at least one charitable beneficiary at the end of the time period. For example, imagine that you established a charitable remainder trust and transferred $1 million into the trust. The trust terms might provide for distributions of $20,000 to each of your four children for ten years. After ten years, the assets … [Read more...] about What is a charitable remainder trust?
Is there a better option?
Yes. Many people use a trust to make charitable gifts within their estate plan because of the numerous advantages a charitable trust offers. For instance, you have the ability to retain a significant amount of control over how your designated charity uses the assets you gift through the trust terms you create as the Settlor of the trust. In addition, when you create a trust you choose a Trustee who is responsible for managing the trust and protecting the trust assets, offering additional … [Read more...] about Is there a better option?
Can I use my Last Will and Testament to make charitable gifts?
You can make charitable gifts in your Will; however, there are a number of drawbacks to using this method for anything but a small, one time gift. For most people, the number one disadvantage to making charitable gifts in a Will is that doing so does not allow you to retain any control over how the gift is used by the beneficiary. Typically, when a gift is made in your Will the funds or assets gifted become the property of the recipient with no strings attached. In addition, if you wish to make … [Read more...] about Can I use my Last Will and Testament to make charitable gifts?
What other purposes might a trust serve in my estate plan?
Trusts can help further a wide range of estate planning goals which is why trusts are so often found in an estate plan. Among the numerous and varied estate planning goals that can be furthered using a trust are: Probate avoidance Pet planning Long term care benefit planning Asset protection Incapacity planning Special needs planning Protecting the inheritance of a minor child Charitable gifting Tax avoidance Funeral planning … [Read more...] about What other purposes might a trust serve in my estate plan?
Should I use a Will or a trust to distribute my estate assets?
People sometimes choose to execute a Last Will and Testament as their initial estate plan. As assets grow, however, the option to switch to a trust as the primary distribution method is often the wise move. Whether you want to use a Will or a trust to distribute your estate is something that can truly only be decided after consulting with an experienced and qualified estate planning attorney; however, there are some common considerations when deciding whether a Will or a trust should be used. If … [Read more...] about Should I use a Will or a trust to distribute my estate assets?
What is a trust?
At its most basic, trust is a relationship whereby property is held by one party for the benefit of another. Trusts are broadly divided into living trusts and testamentary trusts with the former activating during the lifetime of the Settlor (the creator of the trust) and the latter typically being activated at the time of the Settlor’s death by a provision in the Settlor’s Will. Living trust can be further sub-divided into revocable and irrevocable living trusts while a testamentary trust is … [Read more...] about What is a trust?
What happens to my Will after my death?
Except in the case of a very modest estate, as soon as possible after your death, the individual appointed as the Executor of your Will must submit the original Will to the appropriate court for probate. The Executor is also required to formally notify beneficiaries and heirs of the estate as well as creditors that probate is underway. Creditor claims are reviewed and paid if approved. Any federal (and/or state if applicable) gift and estate taxes due must also be paid. Eventually, the terms of … [Read more...] about What happens to my Will after my death?
Can’t I just use one of those DIY Will forms I found on the internet to save money?
Given the prevalence of the internet in today’s society, people often make the mistake of thinking they can save time and money by using a “DIY” Will form they find on the internet. Unfortunately, you are more likely to cost your loved ones unnecessary time and money when it comes time to probate your estate by using these forms. DIY Will forms are notorious for having mistakes, errors, and omissions that lead to protracted litigation during the probate of an estate. Given the importance of your … [Read more...] about Can’t I just use one of those DIY Will forms I found on the internet to save money?
