Charitable Lead Trusts: Types and Taxation

Key Takeaways

Charitable Lead Trusts enable:

  • Philanthropic Goals: Support charities while reducing tax liabilities.
  • Flexible Structures: Offer various types for different planning needs.
  • Tax Efficiency: Provide potential tax advantages for donors and their heirs.

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Charitably inclined high-net-worth individuals often want to provide for their philanthropic goals while reducing their tax liability. While there are many different ways to do this, there are some lesser-used options that can create unique opportunities for charitable giving. 

An often underutilized but valuable tool in estate planning is the Charitable Lead Trust.

Continue reading Charitable Lead Trusts: Types and Taxation

What is a Charitable Remainder Trust and How Are They Taxed?

Key Takeaways

Charitable Remainder Trusts provide:

  • Income and Tax Benefits: Offers an income source while enabling significant tax deductions.
  • Asset Management: Facilitates the transfer of assets to a trust for charity and personal gain.
  • Philanthropic Goals: Supports charitable causes after fulfilling the income period.

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A significant benefit of Charitable Remainder Trusts is that they allow the opportunity for donors to know they will be giving financial support to a favored charity in the future. Charitable Remainder Trusts are commonly used for the purpose of planned giving within a thoughtful and holistic financial plan.

Alliance administers many different kinds of Charitable Remainder Trusts. Learn more about how they are taxed differently than other types of trusts in this article.

Continue reading What is a Charitable Remainder Trust and How Are They Taxed?

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