Charitable Trusts Increase in Popularity

There is growing interest in charitable remainder trusts for contributions of assets with high appreciation value. Assets transferred to a charitable remainder trust will be shielded from tax on any capital gains. As a result, the funds from the trust can be fully reinvested versus an individual who would be left with 77 cents on the dollar after taxes. While the trust can pay income to the income beneficiaries, clients should be sure that they have charitable intent because the trust is irrevocable. An individual who creates a charitable remainder trust is given at least a 10% tax deduction of the value of the trust assets. With the many tax benefits, it is no wonder why charitable trusts are increasing in popularity.

See Donald Jay Korn, Tis the Giving Season: The Allure of Chritable Trusts, Financial Planning, Nov. 25, 2013.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.