Charitable Trust Planning in Nashville

Start with the giving objective and timing

Clarify what you want the charitable gift to accomplish and when you want the charity to benefit. A charitable remainder trust can pay noncharitable beneficiaries before a charitable remainder. That structure makes the timing and relationship between those interests central planning questions.

Compare that approach with your intended timing of support: should noncharitable beneficiaries receive payments before the charitable remainder, or is another arrangement the goal? The answer depends on your objectives and the structure being considered; this page does not recommend particular terms.

Compare the people, charity, and administration

Identify the people you want to support, the charitable organization or organizations you have in mind, and the person or entity you expect to handle administration. These are separate decisions: naming a charitable beneficiary does not itself explain how other beneficiaries are to be supported or how assets will be administered.

Bring the questions together before selecting a structure: What is the primary charitable purpose? Who should receive support first? Which charity should receive the remainder? What administrative responsibilities need to be addressed? A clear comparison can expose choices that otherwise remain bundled together.

Prepare an objectives-and-assets worksheet

A useful starting worksheet is a short worksheet that records your giving objective, intended timing of support, proposed charitable beneficiaries, other beneficiaries, and assets you are considering. Note what is known and what still needs investigation; avoid treating a preliminary list as a finalized trust plan.

Gather the information available about the assets under consideration and any existing documents or arrangements that may affect them. The worksheet can help focus discussion on how the proposed charitable remainder and the interests of other beneficiaries relate to one another.

• Your charitable purpose and the organization or organizations you are considering.
• The noncharitable beneficiaries you want to support and when you hope support will occur.
• A list of assets being considered, with relevant ownership or existing planning information available to you.
• Questions about who would administer the assets and what information or decisions that role would involve.

Understand federal requirements before deciding

Federal requirements and reporting apply to charitable remainder trusts. Do not assume a particular structure will produce a deduction or other tax result: a general description does not determine your tax result. Tax consequences depend on the plan and applicable requirements, so the trust’s purpose, beneficiaries, assets, and administration should be considered together rather than beginning with a tax promise.

Dale Law Group, PLLC serves clients across Tennessee. The firm’s listed office is in Murfreesboro; the Nashville page does not imply a Nashville office or determine where any legal matter would be handled.