Planning for the future is a critical step for New Jersey adults of all ages and income levels. When creating a plan, it is important to consider what the long-term objectives are for your wealth and assets. Depending on your individual goals, you may want to give to charity or a non-profit organization through your estate after you pass. There are different planning tools that can help you accomplish this goal.
Trusts are estate planning tools that allow you to protect assets and designate them for a specific use in the future. There are many different types of trusts, including certain ones that allow you to give to charitable organizations. If you want to make sure you implement strategies that allow you to give and donate even after you pass away, this could be a beneficial step for you.
What does it do?
There are times when directly giving to charity is the right approach. However, you want to consider a more long-term perspective when it comes to managing your wealth and enjoying certain tax benefits. Consider the following about charitable trusts:
- A charitable trust allows you to designate specific assets for giving, and beneficiaries will not be able to use that money in other ways against your wishes.
- In a charitable trust, a charity will usually hold and use the assets for a specific amount of time. Interest produced by the assets will also go to the charity.
- Usually, a charitable trust has to be irrevocable in order for the grantor to enjoy tax benefits.
- There are specific types of charitable trusts, such as a charitable remainder trust and a charitable lead trust, that could work for your specific estate planning goals.
The right choice depends on your goals and how you want to manage your wealth during your lifetime.
Make the best choices
It is important to make the right decisions when estate planning and considering what you want to do with your wealth and assets in the future. If you believe any type of trust is in your best interests, you may want to seek the opinion and guidance of an experienced attorney. This legal guidance can ensure you are making choices that will make sense in the future for both you and your beneficiaries.