Tampa Charitable Remainder Trust Attorney
Charitable gifting can be incorporated into your estate plan to not only benefit the charities that mean the most to you, but to also benefit you and your heirs as well. There are a number of options when it comes to charitable gifting, tax reduction, and asset protection, and one of these is the charitable remainder trust. The Tampa charitable remainder trust attorneys at Strategic Counsel Law Group, L.C. can assist you with creating the ideal state plan for your and your heirs’ specific needs; a charitable remainder trust may be part of that plan.
What is a Charitable Remainder Trust?
A charitable remainder trust (CRT) is a type of irrevocable trust that can be used to distribute assets to charities of your choosing, while also generating income for you and your beneficiaries at the same time. Furthermore, CRTs can be used to reduce taxes. The income you receive from the assets you use to fund the trust (such as cash from savings accounts, real property, private stock, and private business interests) is tax-free. Additionally, depending on how the CRT is funded, you may be eligible for a partial income tax reduction.
Benefits of Creating a Charitable Remainder Trust
Once a charitable remainder trust is funded, you can name yourself to receive income for up to 20 years. Or, you can name beneficiaries such as your children or grandchildren to receive income from the trust for the remainder of their lifetimes. The charity or charities that you name will receive everything left over. Benefits of creating a charitable remainder trust include:
- Income stream for you
- Potential long-term income stream for your beneficiaries
- This income stream is tax-free
- Qualifies you for a partial income tax reduction
- The assets used to fund the trust are protected from creditors
- You charities of choice end up with the remainder of the balance
Two Types of CRTs
There are two types of charitable remainder trusts. An experienced Tampa charitable remainder trust attorney can help you determine which is best for you:
- Charitable Remainder Annuity Trusts—A CRAT pays out a specific amount each year, between five and 50 percent of the property in the trust when it was established. Additional contributions cannot be made.
- Charitable Remainder Unitrusts—A CRUT pays out a fixed percentage of the trust’s assets each year, also between five and 50 percent of the value of the assets. With a CRUT, additional contributions can be made, unlike a CRAT.
Call an Experienced Tampa Charitable Remainder Trust Attorney Today
When it comes to strategic estate planning, there is no one size fits all plan. Here at Strategic Counsel Law Group, L.C., our attorneys listen to our clients’ goals, and come up with the best approach possible to meet those goals. Charitable remainder trusts are a great option for those seeking to avoid taxation, generate income for themselves or beneficiaries, and ensure that the charities of their choosing are bequeathed when they pass away. Call one of our Tampa charitable remainder trust attorneys today at 813-286-1700 to schedule a free consultation.