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Charitable Remainder Trust in Cary

The idea of leaving assets to a charitable foundation is one that we all can aspire to. However, many people also wish to ensure that their families or other heirs receive the benefits of a Trust before remaining funds go to charity.

In these situations, individuals should consider creating a Charitable Remainder Trust in Cary. The creation of an Irrevocable Trust ensures that nominated heirs receive benefits while a charity receives the remainder of a person’s estate. A dedicated attorney can provide more information about this estate planning tool and the impact that it could have on a person’s goals for the future.

Charitable Remainder Trusts vs. Charitable Lead Trusts

All Charitable Trusts function to ensure that a charity receives a portion of a party’s estate after they pass away. Under North Carolina Revised Statutes § 36C-4-401, the only requirements for a Trust are that it places property under the care of a trustee and nominates beneficiaries.

In a Charitable Trust, those beneficiaries will include both a charity and other parties. The unique aspect of a Charitable Remainder Trust is that the other parties have preference in receiving their benefits before the charity. For example, one beneficiary could receive $1,000 a month for five years. This period must end before a charity receives the rest of the value in the Trust.

This format contrasts with Charitable Lead Trusts, where the charity receives payment first. An attorney well-versed in Charitable Remainder Trusts can provide more information to Cary residents about these various options.

Risks of Charitable Trusts in Cary

It is important to remember that Charitable Remainder Trusts are irrevocable. This means that once a Trust maker signs the paper, the trustee must perform their duties under the document. This includes taking control of the named property and holding it in Trust until the maker’s death.

In addition, the Trust maker is unable to modify the language of the testamentary document. For example, if a Trust maker has more children or gains other family members, they will not be able to add them as beneficiaries on the Trust. Furthermore, a party’s philanthropic desires may change after establishing a Charitable Remainder Trust. Unfortunately, these donations will need to come from assets outside of the existing Trust. A skilled local attorney can work with individuals to ensure that they understand the benefits and drawbacks of creating Charitable Remainder Trusts.

Consult an Attorney on Creating a Charitable Remainder Trust in Cary

Leaving money or assets to a charity can be a noble goal for a person’s life. Perhaps the most efficient way to accomplish this is to place property or money into a Trust. That being said, choosing the proper format for this estate planning tool is essential.

Many people choose to create a Charitable Lead Trust in Cary. This testamentary document gives beneficiaries first priority when the time comes to distribute a person’s assets. If you are considering establishing a Trust, work with a seasoned lawyer to determine the best option for your situation. Call our firm today to discuss your needs and goals for the future.