When you have trust, there are a lot of things that you can do with the money. In many cases, you can spend it just like you would out of a standard checking account, but there are also some differences to know about. If you’re creating a trust to make managing your assets easy after you pass away, you’ll want to know how it works and what you can do.
Perhaps one of your desires is to give to charities with the money that you’ve earned and accumulated over the years. You can do that with trust. You can even create a charitable trust specifically so that you can give money to the right entities with ease. However, there are some disadvantages to think about in doing this, as well as understanding the process required.
A charitable trust is created by a grantor or donor. They create the account in the name(s) of a charitable organization that they are going to donate money. They will also name someone to manage the trust and its assets, including the way that the money is distributed according to the trust agreement.
The trustee will also be responsible for selling assets and investing the proceeds elsewhere. You have the choice of two types of charitable trusts:
A charitable lead trust is one that is set up so that the income produced by the trust account goes directly to the named charity for a specific number of years. Then, the assets left are distributed to other beneficiaries that are named in the trust document.
A charitable remainder trust is one where the income produced is first distributed to non-charity beneficiaries, and then the remainder of the money is given to the charity named. Most people are talking about this type of trust when considering one of these agreements.
You should talk with Gandhi Selim Law and get some help setting up your trust, as well as planning your estate. There are a lot of laws and guidelines to consider with these accounts, and it can be hard to keep it all straight. Fortunately, if you want your money to go to charity after you die (or even while you’re still alive), this is a great way to do it. It just takes a little education and effort to get things set up, but with a proper attorney, it should be a simple process.
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