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Trusts For Charities

Dec 22, 2000 - © Susan M. Weschler

-Gift tax can be removed from your estate.

-A CLT can also help you to avoid charitable contribution limits when filing your personal income tax returns.

What are some of the disadvantages of a CLT?

Consider the fact that: -Setting up a CLT is costly and complex. There are many tax law requirements which must be met.

-CLTs can be subject to certain rules and restrictions when it comes to private foundations.

-CLTs can be subject to taxes on certain property sales.

-CLTs are still a taxable entity, with liabilities for income tax. The only tax avoidance and tax deductions occur when it is related to charity.

-Gifts to CLTs do not qualify for the $10,000 annual gift tax exclusion.

It’s best to consult with a specialist in this field, as charitable trusts are among the most complex trusts to work with. They do however, provide many valuable planning benefits.

The copyright of the article Trusts For Charities in Estate Planning is owned by Susan M. Weschler. Permission to republish Trusts For Charities in print or online must be granted by the author in writing.

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