A charitable remainder trust is one that is set up to distribute a person’s assets over a stated period of time to designated beneficiaries. Once that time expires, the remaining assets are donated to a charity of choice.
This type of trust is tax exempt and can help lessen the taxable income of the individual whose Pennsylvania properties and assets will be divided. While a charitable trust attorney can answer your specific questions about a charitable remainder trust, below are some of the general aspects inherent in this type of trust.
A great benefit in a charitable remainder trust is that it is tax-exempt.
No capital gains taxes on the sale of assets are required to be paid when you set up a charitable remainder trust. This can save a grantor a lot of money in terms of tax dollars, particularly on highly appreciated assets. Plus, the trustee will receive the full value of the investment, which can in turn, be transferred into another investment with a higher yield.
If outlined correctly, the charity you select will receive the full value of the transfer of assets. There are some restrictions on what types of charities qualify, so it’s recommended to seek counsel from a Pennsylvania charitable trust attorney.
What types of assets qualify?
A wide range of assets can be included in a charitable remainder trust, such as:
- personal property;
- real estate;
- mutual funds;
- exchange traded funds;
- restricted securities;
- partnership interests; and
- limited liability companies (LLCs), among others.
Contact a Pennsylvania Charitable Trust Attorney
To learn more about a charitable remainder trust, an attorney at Unruh Turner Burke & Frees can help. Give us a call at our offices in West Chester: (610) 692-1371; Phoenixville: (610) 933-8069; and Malvern: (610) 240-0750.