Charitable Trusts in Collinwood

Start with the order and timing of support

Write down the intended sequence of benefits. Do you want a charitable organization to receive assets as an outright gift, or do you want noncharitable beneficiaries to receive payments before a charitable remainder? A charitable remainder trust can provide for noncharitable beneficiaries before the remainder goes to charity; federal requirements and reporting apply. The arrangement is not simply a gift with a different label, because the timing and administration matter.

Use this comparison to clarify the objective, not to select a tax strategy. Tax treatment depends on the trust and applicable requirements; no particular deduction or result should be assumed.

Compare the plan across four questions

Before discussing possible terms, prepare a one-page comparison for each charitable-giving option you are considering. Include the following:

• Giving objective: What do you want the charitable gift to accomplish?
• Timing: Should the charity benefit now, or only after another beneficiary has received support?
• Beneficiaries: Who, if anyone, should receive support before the charity, and what is the intended relationship between their interests?
• Charity and administration: Which organization do you have in mind, and who would be responsible for administering the trust assets?

Make the organization choice concrete

List the charitable organization you currently prefer and any alternative you would consider. Note how you would identify the intended recipient in the plan and what you would want addressed if your preference changes. These are planning questions to resolve before terms are drafted; do not assume a trust can automatically adapt to every change.

Also identify the assets you are considering and any practical questions about how they would be administered. This helps distinguish a giving intention from an operational plan. The appropriate structure and terms depend on the circumstances and applicable requirements.

Bring a focused discussion list

Bring your comparison, the names of intended beneficiaries and charitable organizations, and a list of assets you may want to include. Ask: Does the contemplated timing match my goal? What federal requirements and reporting would apply? How would the intended charity and any other beneficiaries be addressed in the terms? What administration would the arrangement require, and what decisions would remain for the person administering it?

Dale Law Group, PLLC offers charitable trust planning. A discussion can help you compare the giving objective, timing, beneficiaries and administration without assuming that one structure or tax result is right for every plan.