Creating your estate plan may involve more than just specifying which family members will get which assets. This is also a chance to build a lasting legacy and support the causes you believe in.
You can add a charitable trust to your estate plan. This enables you to give a non-profit organization a donation in a way that you specify. If you’re interested in this, you’ll come across two main types.
Types of charitable trusts
Charitable trusts are irrevocable, which means that once you set them up, they can’t be changed. A trustee will manage the trust and distribute the assets according to your directions. The only way you can change an irrevocable trust once it’s made is with the approval of the charity and all trustees or the court.
If you use a charitable remainder trust, you and your beneficiaries will receive the benefits of the trust for a specific amount of time. Once that time passes, the remainder of the trust will go to the charity.
The other type of charitable trust is the charitable lead trust. In this case, the charity receives its portion of the estate first. Once that’s distributed, the remaining contents of the trust are distributed to the beneficiaries you choose.
Whether you want to include a charitable trust in your estate plan or not, you should ensure that the entire plan accurately reflects your wishes. Working with someone familiar with these matters is beneficial, so they can ensure that your loved ones have a clear roadmap to follow when the time comes.