Charitable Trusts in Trimble

Start with the purpose and timing of the gift

Clarify whether your central aim is to support a charitable organization now, provide for noncharitable beneficiaries before a charitable remainder, or direct assets to charitable purposes through your broader estate plan. These objectives can call for different planning conversations. A charitable remainder trust, for example, can pay noncharitable beneficiaries before a charitable remainder; federal requirements and reporting apply.

Do not begin by assuming a particular trust will produce a tax deduction or other tax result. First describe who should benefit, when support should occur, and what you want the charitable gift to accomplish. The trust structure and its administration need to fit that purpose.

• What is the intended charitable purpose, and have you identified a particular organization?
• Should noncharitable beneficiaries receive support before the charitable remainder?
• Which assets are you considering, and who would be responsible for administering them?

Compare the choices that affect the plan

A useful comparison is not simply “trust or no trust.” Set your desired timing of charitable support alongside the needs of other beneficiaries, your certainty about the intended charity, and the practical demands of managing the proposed assets. If the organization is not yet chosen, consider what direction you want your plan to give and what questions that raises for administration.

Keep roles distinct as you compare options. A trustee administers trust assets under the trust’s terms; that role is not interchangeable with an agent acting under a power of attorney or a court-appointed guardian or conservator. Consider who could carry out the administrative role and what information they would need.

• Compare a charitable remainder arrangement with directing a charitable gift through other estate-planning documents.
• List other people or organizations you want to benefit and the timing you envision for each.
• Identify any uncertainty about the charity, the assets, or the person who would administer the trust.

Prepare an asset-and-purpose worksheet

Before a planning conversation, make a one-page worksheet with four columns: charitable purpose or organization; intended timing; other beneficiaries and when they should receive support; and assets you are considering. Add a note beside each asset describing how it is held and where it is located. Mark unknowns rather than guessing.

For property associated with Trimble, note whether it is in Dyer County or Obion County. The counties have separate Registers of Deeds contacts listed by the University of Tennessee County Technical Assistance Service. Those directory contacts are places to seek current land-record contact information; a directory entry or recorded document does not determine ownership, guarantee clear title, or establish the right transfer procedure. Confirm contact details before relying on them.

Plan the next questions

Dale Law Group, PLLC offers charitable-trust planning and other estate-planning services to Tennessee clients. Bring your worksheet and ask how the proposed arrangement would address your giving objective, the timing of support for other beneficiaries, selection of the charitable recipient, and ongoing asset administration. You can also ask what federal requirements and reporting may apply and what additional information is needed to evaluate the plan.

The firm’s office is in Murfreesboro; this page does not imply a Trimble office. Questions about a county land-record contact should be directed to the appropriate current county resource.