Charitable Remainder Trusts

Are Multi-Generational Charitable Remainder Trusts still tax efficient and what are the limitations?

A multi-generational charitable remainder trust is a way to get around the IRA rules and give highly appreciated stock to charity. Are Multi-Generational Charitable Remainder Trusts still possible and tax efficient? The answer is yes, and it gets better.

CRTs are still excellent estate planning tools because they help reduce estate and gift taxes while supporting a favorite charity. They are also much easier to set up now than in 2004—there's no longer a need for a private letter ruling from the IRS and waiting several months for approval.

It has been around for decades but is an excellent way for the wealthy to take advantage of tax-free growth in their assets while also doing good. These types of trusts are set up with a grantor (the person or persons who set it up and fund it), the beneficiaries (the people who will receive the money after the grantor passes away), and beneficiaries of the remainder interest (the people who will receive the funds after everyone has passed away).

Multi-Generational Charitable Remainder Trusts allow several generations to have the same gift go much further than just one generation. What makes them so great for charitable giving is that the money given to the trust can grow tax-free and be used for charitable purposes over several generations. The downside comes in when there are limitations on how much can be given to the trust from any one person and how long the trust needs to last. Knowing those limitations before using this type of trust is essential to ensure you stay within limits.

Estate Planning Attorney Free Consultation In Utah

If you need legal help, call this law firm and talk with our experienced attorneys about estate planning for a FREE consultation.

We help you with Estate Planning, Wills, Trusts, Power of Attorney, Health Care Directive, Estate Administration, Probate and More

Parklin Law - Estate Planning

5772 W 8030 S, # N206

West Jordan UT 84081

(801) 618-0699

https://parkin-law.business.site/

40.605070, -112.027530

Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.

Location: Kamas, UT 84036, USA

Popular posts from this blog

Personal Liability of an LLC

Can the Owner of a Limited Liability Company Be Penalized? As a business owner, you must understand the potential risks and liabilities you may face. If you own a limited liability company (LLC), you may be wondering whether you can be personally penalized for the actions of your business. Here's what you need to know about the potential for personal penalties as an LLC owner. The Benefits of an LLC An LLC is a business structure combining elements of a corporation and a partnership. One of the main benefits of an LLC is that it offers personal liability protection for its owners, known as members. This means that, in most cases, the member's personal assets are protected from any legal action taken against the LLC. However, it's important to understand that this liability protection is not absolute. There are certain situations in which an LLC owner may be personally liable for the actions of the business. Personal Liability for LLC Owners There are several circumstances i...
Read more

Does an executor of the estate have an expiration?

Image
Does an executor of the estate have an expiration? Madison Assistant at  Parklin Law An executor does not have an expiration date. An executor has a job to do and he or she is the only person who can do it. The executor is in charge of settling the estate and making sure all debts are paid; paying any taxes on the estate and distributing the remainder according to your will. The executor may need help to carry out this work, but he or she is still in charge of everything. Just like the laws of inheritance can be complex and confusing, they also have plenty of exceptions. One interesting exception is that an executor or administrator's role doesn't expire after a certain period of time. Although there are no set rules on how long you need to be the executor of someone's estate, you don't have to worry about it expiring. If you're named as an executor, your job is to handle the estate until it's closed, which means paying debts, distributing assets, and filling ou...
Read more

Can my attorney be the executor of my will?

Image
Can my attorney be the executor of my will? Madison Assistant at  Parklin Law Many people ask whether the attorney who helps them create their will can also be the executor of that will. The quick answer is yes. However, there are some things to consider. In a perfect world, your attorney would be both your estate planning advocate and your executor. But in the real world, it's often hard to find an attorney who is willing and able to take on both roles. Not all attorneys are equipped with the skill set required to handle the many aspects of an estate plan. If you need help with complicated tax planning or asset protection strategies, then you'll want an attorney with expertise in those areas. You may also need help from a specialist estate planning attorney if your assets are large enough that you're subject to complex transfer tax laws. Finally, if you have a complicated family situation like a second marriage or blended family, it may be necessary to bring in legal couns...
Read more