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Charitable Lead Trust in Wake Forest

If you wish to donate to charity after you pass away, you may also worry how these charitable goals will affect your ability to leave part of your estate for your family. Luckily, modern estate planning options give flexibility in providing for others after death. Beyond traditional Wills, many people now choose to create Trusts to fulfill their final wishes. Specifically, a Charitable Lead Trust can ensure that some money goes to charities before heirs receive the rest of your estate. If you are considering creating a Charitable Lead Trust in Wake Forest, talk to a lawyer. A knowledgeable attorney can clarify the relevant laws and craft documents that meet your goals for the future.

Forming a Trust to Ensure Funding for Charities

Every person has unique goals when creating an estate plan. However, many people choose to provide funding for a charity that goes into effect after their death. A Trust can serve as a powerful tool to achieve this purpose. A Charitable Lead Trust ensures that a charity receives a set amount of money at a specific time. According to North Carolina Revised Statutes § 36C-4-401, the formation of a Trust requires only the following actions:

  • Placement of property into the Trust
  • Nomination of a trustee
  • Designation of beneficiaries

Specifically, a Charitable Lead Trust will name a charity as the primary beneficiary and nominate other heirs in a secondary role. This format will ensure that the charity receives the full amount of money at the specified date. When this date passes, the remainder of the assets in the Trust will flow to the other beneficiaries. An attorney who understands Charitable Lead Trusts could provide more information about how this process works in Wake Forest.

Specifics of Charitable Lead Trusts in Wake Forest

All Trusts, including Charitable Lead Trusts, function on the same basic premise. Once a party places property into the Trust, they no longer retain control over it. This means that the property is subject to neither taxation nor probate. Accordingly, providing funds to a charity through a Trust can help to ensure that the organization receives the full benefit of the gift without interference from the IRS or probate courts. On the other hand, taxation and probate complications are always a risk when providing the funds through a Will.

However, it is important to remember that Charitable Lead Trusts are irrevocable. This means that unless specific events occur, a party is unable to recover funds or make any changes to the language of the document once assets are placed into the Trust. Finally, a Charitable Lead Trust is only one type of Trust that can help provide funds to charities. For instance, a Charitable Remainder Trust allows heirs to receive funds before the charity. A knowledgeable local attorney can further explain the difference between these types of Charitable Trusts.

Call a Wake Forest Attorney to Discuss Charitable Lead Trusts

A Charitable Lead Trust is one way to ensure that a charity receives first priority for funding after your death. In these Trusts, other beneficiaries will only receive assets after the charity obtains its share. Additionally, the Trust will shield your assets from taxation and avoid the common issues that accompany probate. A lawyer at our firm can provide more information about the concept of Charitable Lead Trusts in Wake Forest and why they might be right for you. Our legal team can help you choose assets to place into Trust, identify potential trustees, and craft the documents with specific language to meet your goals. Reach out today to learn more.