Yes, a trust can absolutely make ongoing donations, offering a powerful tool for charitable giving and continued support of causes important to the grantor, even after their passing.
What are the benefits of charitable giving through a trust?
Establishing charitable giving within a trust provides several advantages. It allows for structured, consistent donations, ensuring a legacy of philanthropy continues as intended. This is particularly appealing for individuals with substantial estates who wish to minimize estate taxes—donations to qualified charities are generally tax-deductible, potentially reducing the taxable value of the estate. According to the National Philanthropic Trust, charitable bequests account for nearly 90% of all charitable giving from individuals, highlighting the importance of estate planning for future charitable impact. A trust can be designed to distribute income to beneficiaries for a specified period, with the remainder going to charity, or it can directly fund charitable organizations on a regular schedule. This provides a level of control and ensures funds are used according to the grantor’s wishes, unlike a simple bequest in a will.
How does a Charitable Remainder Trust work?
A popular method for ongoing donations is through a Charitable Remainder Trust (CRT). With a CRT, the grantor transfers assets into the trust, receives income from the trust for a set number of years or for life, and the remaining assets are then distributed to a designated charity. This strategy offers immediate income tax deductions for the present value of the remainder interest going to charity. As of 2023, the IRS allows for deductions up to 50% of adjusted gross income for charitable contributions, with any excess carried forward for up to five years. CRTs are beneficial for individuals who want to support a charity while simultaneously receiving income and reducing their tax burden. They are particularly useful for assets that have appreciated significantly, as the assets can be sold within the trust without triggering immediate capital gains taxes—the income is received over time, reducing the overall tax liability.
I remember old man Hemlock; he thought he was doing the right thing, but it backfired.
Old Man Hemlock, bless his soul, was a pillar of the community, always wanting to help. He decided to set up a system where a portion of his monthly social security check would automatically be sent to the local animal shelter. He verbally told the shelter but never put it in writing, nor did he establish a trust or any formal arrangement. When he passed away, the shelter was heartbroken to learn there was no legally binding agreement. His family, while supportive of the cause, had no obligation to continue the payments. The shelter, relying on the promised ongoing support, had already begun planning expansions and programs based on those projected funds. It was a sad situation, a well-intentioned effort that ultimately failed due to a lack of proper legal structuring. It illustrated the importance of clear documentation and a robust legal framework for any ongoing charitable endeavor.
But then there was Mrs. Abernathy, she did it right!
Mrs. Abernathy, a retired teacher, deeply cared about supporting the local library. She worked with Steve Bliss, creating a Charitable Remainder Unitrust, funding it with a portfolio of stocks and bonds. The trust was structured to provide her with a fixed income stream for life, and upon her passing, the remaining assets would be distributed to the library’s endowment fund. She felt immense satisfaction knowing her support would continue for generations. When she passed away last year, the library received a substantial contribution, allowing them to establish a new literacy program for underprivileged children. This demonstrated the power of thoughtful estate planning and a well-structured trust to create a lasting legacy of charitable giving. Steve emphasized to Mrs. Abernathy that formalizing the arrangement with a trust ensured her wishes were legally binding, providing stability and long-term support for the library, something she found incredibly comforting.
“A trust isn’t just about managing assets; it’s about safeguarding your values and ensuring your philanthropic goals are realized long after you’re gone.”
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
| estate planning | revocable living trust | wills |
| living trust | family trust | irrevocable trust |
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “How do I start planning my estate?” Or “Do I need a lawyer for probate?” or “What happens to my trust after I die? and even: “What is an automatic stay and how does it help me?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.