If you don’t have someone in your family or friend group to whom you’d like to pass your assets, then you may want to think about leaving them behind to a charity that you support. You could put create a charitable trust as a part of your estate plan. You’d be able to pass your assets on to a charity you want to support during or after your lifetime by doing so.
Giving to a charity, college, church or other organization can help you reduce your taxes during your lifetime. It may also help you reduce the value of your estate, which may allow you to more easily qualify for Medicaid or other benefits as you age. How you pass on your assets matters, so giving them away via a charitable trust is something to consider.
What are charitable lead trusts?
One kind of trust to consider creating is called a charitable lead trust. This kind of trust pays out to the charity during your lifetime. This may allow you to see how the charity uses your money and assets to benefit others while you’re still alive. The nice thing about this trust is that you can fund it with specific assets and still create other trusts to benefit people that you know if you wish. The assets then may pass on to your spouse or other beneficiaries when you die.
Charitable remainder trusts
Another option is a charitable remainder trust, which lets you or another beneficiary receive payments while you’re alive. Then, when you pass, the remainder would pass on to a charity of your choice.
These are a few options to consider if you want to pass on assets to a charity. Building this charity giving into your estate plan is an excellent way to make sure it helps you and the charity you trust.