What is a Charitable Remainder Trust?
In lieu of leaving a legacy, by a will, to a charity, going through probate, with all those issues and ramifications, you can place assets into a charitable remainder trusts. During your lifetime you receive a set percentage from the
trust. Consequently, when you die, the remainder in the trust goes to the charity(s) of your choice
Benefits of a charitable remainder trust:
downside of a charitable remainder trust is that it is irrevocable,
meaning once you create the trust, you can't cancel it. Additionally, any income you receive from the trust is
subject to income taxes.
But, while you can't
revoke the trust, you may have the ability to change the beneficiary. Also, you may also serve as
trustee, giving you control over how the trust assets are invested.