People create estate plans for many reasons. One potential purpose of a Trust is to provide financial support to one or more charities, although these donations do not need to constitute all of one’s estate. A Charitable Lead Trust in Cary can serve the purpose of supporting a charity while still leaving portions of an estate to other beneficiaries.
However, creating a Charitable Lead Trust may require dedicated legal assistance. This estate planning tool is irrevocable, meaning that the transfer of property is permanent. Additionally, the charity receives the benefits for a set period of time before the beneficiaries receive the remainder. An experienced attorney can help to decide if a Charitable Lead Trust is right for you.
Leaving a portion of one’s assets or estate to a charity is a noble concept. Charitable organizations are happy to receive these funds, and many could not function without them. A Charitable Lead Trust is one way to ensure the funding of a charity. North Carolina Revised Statutes § 36C-4-401 says that these Trusts do not need to take a specific form, but they must nominate a trustee and identify all beneficiaries.
These documents take direct control over a person’s assets and may go into effect upon the creation of the Trust or when the Trust maker dies. Whenever the document goes into effect, the trustee works to distribute the funds to the charity first. These distributions last for a set period of time, after which the remainder of the funds will go to the nominated beneficiaries. A knowledgeable attorney can further advise on how creating a Charitable Lead Trust in Cary can ensure that a charity receives a specific amount of money over time.
It is essential to understand that Charitable Lead Trusts are irrevocable. This means that once property transfers into the control of the Trust, the original owner cannot retake possession. In addition, the Trust maker cannot revise the document to name new beneficiaries or change the length or number of payments.
For this reason, if a person wishes to make donations to a charity, it is crucial to thoroughly research the organization first. If they change their mind, or if the charity stops functioning before the Trust comes to a conclusion, the purpose of the document may no longer reflect the maker’s wishes. A skilled Trusts attorney can help research a charity’s function to assist Cary residents who are looking to make long-term donations.
Many people choose to leave a portion of their estate to charity. One way to accomplish this is to create a Charitable Lead Trust. These Trusts give a charity priority over receiving funds from one’s estate. A proper Trust will provide specific payment amounts over a set term.
However, creating a Charitable Lead Trust in Cary requires careful planning and consultation with an experienced lawyer. These Trusts are irrevocable, meaning that once they go into effect, they are permanent. Our legal team can help you to determine if this option meets your estate planning needs. Call today to discuss your particular circumstances.