When planning for your estate, one of the first steps is to consider potential beneficiaries to inherit your property. For many people, this can include providing cash or other assets to a charity. However, you may also want to ensure that your children, family, or other heirs receive their fair share of the estate as well. In this situation, creating a Charitable Remainder Trust in Raleigh may be the answer. These Trusts allow for the tax-free transfer of assets to nominated heirs for a set period of time. Once this time expires, a charity will receive the remainder of the value in the Trust. A knowledgeable trust attorney could provide more information about how these estate planning tools can provide funds for both heirs and charities.
Forming an estate plan allows a person to choose who they want to inherit their assets. These plans should establish a hierarchy of priority for the distribution of property to beneficiaries. If donating funds to a charity is part of a person’s estate plan, they need to determine the priority of this gift. While it is certainly possible to provide all of one’s estate to a charity through a Trust, many people want their family and loved ones to also receive a portion of their estate. A Charitable Remainder Trust can fulfill this goal. Under these testamentary documents, heirs receive their portion of the estate first. The Trust must provide these funds either as a one-time outlay or as scheduled payments over time. Once the heirs receive their full value under the Trust, the charity will receive the remainder of the funds. In this way, a person can ensure that their heirs receive the benefit of the estate while still providing a charitable donation.
Forming any type of Trust can be fairly straightforward. There is no specific format that these documents must follow, and state law provides minimal guidance concerning the content. Under North Carolina Revised Statutes § 36C-4-401, a person creating a Charitable Remainder Trust must do three things:
A skilled local attorney could assist with the formation of a Charitable Remainder Trust that meets each person’s specifications and complies with state law.
It is possible to ensure that your heirs receive their fair portion of an estate while making a donation to charity. A Charitable Lead Trust in Raleigh provides payments to heirs on a set schedule. Once this schedule comes to an end, a charity of your choice will receive the remainder of the value in the Trust. Forming these Trusts requires attention to detail and knowledge of the law. You will need to name specific property, nominate a trustee, and specify which parties will obtain the property at a set time. An experienced lawyer at our firm could help during every step of this process. Reach out today to get started.