Many people choose to provide payments or assets to a charitable organization after they pass away. While this is possible as part of a traditional Will, certain types of Trusts may provide a more effective way of donating.
Forming a Charitable Remainder Trust in Wake Forest allows you to make donations to charities at a set time while ensuring that specified heirs will also receive payments. When the period of the Trust comes to an end, the remainder of the property goes to a designated charity.
This can help ensure that one’s heirs receive the assets that they deserve while still providing a generous sum to the charity of your choice. To learn more about this option and whether it suits your needs, talk to a knowledgeable attorney.
All Trusts throughout the state must take on the same basic format, including Charitable Remainder Trusts. According to North Carolina Revised Statutes § 36C-4-401, there are three elements that every Trust must fulfill:
In the example of a Charitable Remainder Trust, the language in the document will specify that heirs receive the first payments. The Trust should also specify the duration of these payments. For example, the Trust may state that Cousin A will receive $500 every month for a period of three years. When these three years come to an end, Charity B will receive the remainder of the funds in the Trust. In this way, a Charitable Remainder Trust can provide for an heir’s future while still supplying funds to a charity in Wake Forest.
Most Trusts are irrevocable, which means that a Trust maker cannot change the terms of the document once they sign it. Additionally, the Trust maker will immediately lose control of the property in the Trust upon signing. The trustee then has a duty to ensure proper distribution according to the terms of the Trust.
However, although a Charitable Remainder Trust is irrevocable, it is possible to change one under limited circumstances. For instance, if the Trust maker, the trustee, and all beneficiaries agree to a revision, this modification can take immediate effect without a court’s interference. Alternatively, courts can act to change a Trust if its initial purpose is no longer possible—for example, if the charity named in the Trust no longer exists.
An experienced attorney in Wake Forest could provide more information about the permanent nature of Charitable Remainder Trusts. Before creating and signing this kind of document, it is crucial to understand the full implication of the terms.
Providing funds to a charity through a Trust is something that many people wish to accomplish while forming an estate plan. One popular option is to create a Charitable Remainder Trust. These tools let you donate to a charitable cause while still protecting the financial future of your heirs. If you are consider establishing a Charitable Remainder Trust in Wake Forest, reach out to a skilled lawyer at our firm for more information.