Charitable Trusts in New Deal

Start with the purpose and timing of the gift

Clarify what you want the charitable arrangement to accomplish before focusing on a particular structure. Consider whether charitable support is intended during your lifetime, after another beneficiary’s interest, or as a remainder after noncharitable beneficiaries have received payments. A charitable remainder trust, for example, can provide for noncharitable beneficiaries before a charitable remainder; federal requirements and reporting apply.

The timing question matters because a plan that prioritizes support for other beneficiaries may work differently from one centered on making a gift to charity sooner. Identify the people who may depend on the assets, the charities you are considering, and whether you want to name a specific organization or describe a charitable purpose. The appropriate terms depend on your circumstances and require careful review.

• What charitable purpose or organizations do you want to support?
• When should charitable support occur in relation to support for other beneficiaries?
• Which people, if any, should receive support before a charitable remainder?

Compare the whole plan, not just the charitable feature

Compare possible arrangements against the same set of priorities: your giving objective, the timing and nature of support for other beneficiaries, the assets involved, and who will administer the arrangement. Also consider how much flexibility you want in identifying charitable recipients and what information or oversight will help you evaluate administration.

A charitable trust may have federal requirements and reporting responsibilities. Do not assume a particular structure guarantees a tax deduction or other tax result. Tax treatment and trust terms depend on the plan and applicable requirements; they should be evaluated rather than presumed.

• Giving objective: a named charity, a charitable purpose, or more than one intended recipient.
• Timing: charitable support now, later, or after support for another beneficiary.
• Administration: who would manage assets and what records or updates you would want.
• Coordination: how the proposed trust fits with your other estate-planning documents and beneficiary choices.

Prepare a charitable-trust decision brief

Before a planning discussion, make a one-page comparison rather than beginning with a preferred trust label. List your charitable goals and possible recipients; note when you want support to occur; identify other people whose needs matter; and describe the assets you are considering. Mark each item as decided, tentative, or unresolved.

Gather any existing trust or estate-planning documents, relevant asset information, and written records of charitable intentions. For each potential charity, record its name and any questions you have about how a future gift would be directed. This preparation can help distinguish a firm objective from an assumption and make unresolved choices easier to discuss.

• Which assets are you considering, and are there existing documents that address them?
• What would you want a trustee to report, and how would you assess administration?
• Are any people or charitable recipients relying on a particular timing or level of support?
• What would you want to revisit if your charitable preferences or family circumstances changed?

Discuss the structure and its responsibilities

Dale Law Group, PLLC offers charitable trust planning. A planning discussion can address how your goals, potential beneficiaries, charitable recipients, assets, and administration preferences relate to one another, and what requirements or reporting apply to a proposed charitable remainder trust.

New Deal is a Census-designated place in Sumner County, rather than a separate incorporated city. Planning questions can be addressed in the context of your Tennessee estate plan without assuming a separate New Deal municipal office or process.