Charitable Trusts in Briceville

Start with the giving objective

Clarify what you want your charitable giving to accomplish before focusing on a particular trust structure. You might want a charity to receive assets at a later point, or you may be considering how charitable goals fit alongside support for family members or other noncharitable beneficiaries. The timing and order of those interests can shape the planning discussion.

A charitable remainder trust, for example, can provide for noncharitable beneficiaries before a charitable remainder. Federal requirements and reporting apply. Whether that arrangement fits your goals depends on the proposed terms and circumstances; it should not be treated as a guaranteed tax benefit.

Compare timing, beneficiaries, and administration

Use the same questions to compare possible approaches: When should the charity benefit? Who, if anyone, should receive support first? Which charity or charities do you have in mind? What assets are you considering, and who would be responsible for administering them?

A plan that puts more emphasis on a charitable remainder after support for other beneficiaries is different in purpose and timing from one designed around a different sequence of giving. Bring those priorities into the discussion rather than assuming one structure is suitable for every charitable goal.

• Write down the intended charitable purpose and any organizations you want to consider.
• List the people or other noncharitable beneficiaries whose interests you want considered.
• Note when you hope each beneficiary or charity would receive support.
• Identify assets for discussion without assuming they should be transferred to a trust.

Prepare a giving and asset worksheet

A short worksheet can turn a broad intention to give into a useful planning conversation. For each asset you are considering, note what it is, how it is currently held, whether another person or organization has a connection to it, and any questions about its administration. Add your preferred charitable purpose, possible recipients, and the timing you have in mind.

Gather relevant existing estate-planning documents and records about the assets. The goal is to give your lawyer a clear starting point, not to decide in advance that an asset belongs in a charitable trust. Ownership, proposed beneficiaries, administration, and the terms under consideration should be reviewed together.

Questions to take into planning

Dale Law Group, PLLC offers charitable trust planning as part of its Tennessee estate-planning services. A planning conversation can help you assess how charitable giving relates to other beneficiaries, the assets you are considering, and the responsibilities involved in administration.

• What charitable purpose and timing matter most to me?
• How should the plan address other beneficiaries, if any?
• What assets am I considering, and what information is needed to evaluate them?
• What administration and federal requirements would apply to the structure being considered?
• How should this plan fit with my other estate-planning documents?