Charitable remainder trusts are estate planning tools that can be effective in reducing certain tax obligations while still providing the beneficiaries of the trust with some specific assets.
At JR Phillips & Associates, PC, our Centennial trust attorneys are experienced at assisting people in the creation and administration of charitable remainder trusts in order to protect their assets and their loved ones while minimizing their future potential costs and stresses, particularly when it comes to tax responsibilities.
How Charitable Remainder Trusts Work
Also sometimes referred to as split-interest trusts, charitable remainder trusts are set up to:
- Grant a certain percentage or portion of the trust’s assets to a non-charitable party (like, for instance, a trustmaker’s spouse, child or other loved one)
- Stop distributing the trust’s assets to this beneficiary after a certain period of time (such as, for example, after 10 years, after the beneficiary reaches a certain age or even after the beneficiary passes away)
- Give the remainder of the trust’s assets to one or more chosen charities
- Provide certain tax breaks to the assets of the trusts to preserve these assets for the chosen beneficiaries (i.e., the non-charitable beneficiary, as well as the chosen charities).
It’s important to point out that, when it comes to charitable remainder trusts:
- The term of these trusts may extend for the duration of a beneficiary’s life or for fixed periods of up to 20 years.
- There are some essential setup and ongoing maintenance costs to plan for and consider.
- Capital tax gains can be eliminated for gifts of long-term appreciated securities.
- In order to fully benefit from the available federal tax deduction, these trusts must be set up and administered according to some very strict terms.
Denver Trust Attorneys at JR Phillips & Associates, PC
If you are considering developing a charitable remainder trust or any type of trust, contact the trust lawyers at JR Phillips & Associates, PC. We provide a thoughtful, comprehensive approach to our clients’ estate planning and elder law needs, and we are dedicated to helping each of our clients and their families find the best solutions for them.
While this means that we provide our clients with the personalized attention they deserve, it also means that our clients can rely on our Centennial trust attorneys to always provide them with competent, caring and professional representation while providing them with the highest quality of estate planning legal services at affordable rates.
Our goal is to help our clients efficiently navigate the complexities of the law so they can develop effective, prudent solutions that will protect them, their assets and their families in the future.
Let’s discuss your options during an initial consultation. To schedule this meeting, call us at (303) 741-2400 or email us using the contact form at the top of this page.
From our offices in Denver, we serve clients throughout the southwest and southeast Metro Area, including (but not limited to) people in Highlands Ranch, Littleton, Castle Rock, Parker, Aurora, Greenwood Village and Englewood.