Many people give to charities throughout their lives. With charitable planning, you can continue to do good, even after you have passed away. Charitable planning allows you to set aside plans and money for your important causes. Read on to learn more about charitable planning and some of its benefits in Michigan.
Benefits of charitable planning:
- Give back: Some people would like to give to charity during the course of their lives, but cannot afford to do so. In these cases, individuals may be able to fulfill their goals of giving back to important causes through charitable planning.
- Continue supporting your favorite charities: Others have supported certain charities and wish to continue doing so.
- Tax breaks for beneficiaries: In addition to doing a good deed and supporting important causes, charitable planning can lead to certain tax breaks.
Be sure to reach out to an experienced estate planning attorney to learn more about the benefits of charitable planning.
What is a trust?
A trust is an agreement that allows a person to select a trustee and allow them to take care of assets until the beneficiary inherits them. There are three main parties involved in the creation of a trust:
- Trustor: The person who creates the trust
- Beneficiary: The person who will receive the assets allocated in the trust
- Trustee: The third party assigned to maintain the assets on account of the beneficiary
Types of charitable trusts:
In Michigan, there are two different types of charitable trusts. A charitable trust allows the individual’s choice of charity to gain interest from the financial gift for a specific period of time. When the period terminates, the remaining assets may go to other beneficiaries. A charitable remainder trust allows charities to receive the assets in a trust at the end of its term. Until then, the donor sustains interest in the gift.
If you have any questions or concerns about charitable planning in Michigan, our firm is here to help. We will walk you through the process every step of the way. Contact us today to discuss your options.
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