Las Vegas Charitable Trust Attorney
For many residents of Nevada, the process of estate planning involves the creation of one or more trusts. Generally speaking, trusts can allow a person to give assets to another person or entity (the beneficiary) without the requirement of going through probate, and without having to worry about high estate taxes for many types of trusts. When a person creates a trust for the good of someone else, the grantor of the trust can also ensure that the beneficiary will have access to assets for an extended period in the future. For this reason, many people who want to provide for their children but are concerned about all of the assets being spent too quickly will establish a trust for the benefit of the children.
There are many different types of trusts, and all of these trusts are either revocable or irrevocable trusts. One common type of irrevocable trust is a charitable trust. A charitable trust allows a person to set aside money for a charitable purpose and to obtain a charitable contribution deduction. If you have questions about establishing a charitable trust in Nevada, you should get in touch with a Las Vegas charitable trusts attorney to learn more about the process.
What is a Charitable Trust in Las Vegas?
A charitable trust is a particular type of irrevocable trust. As an irrevocable trust, a charitable trust cannot be dissolved. In other words, even if the grantor establishes a charitable trust during his or her lifetime and later decides that the money would better serve a different purpose or organization altogether, it is too late to make changes. The nature of an irrevocable trust is that it cannot be amended in most circumstances, or canceled, by the grantor.
Under Nevada law, a charitable trust is a type of trust through which a person can give assets to a charitable cause or organization. According to the IRS, charitable trusts are not tax-exempt by definition, but a charitable trust can seek an exemption from tax as a charitable organization. In order to be tax-exempt, the charitable trust must go through an organization test to determine whether it is also a charitable organization.
Understanding Charitable Remainder Trusts
A charitable remainder trust, or CRT, is a particular type of charitable trust that can also generate income. It is an irrevocable trust. How does it work? The donor to the trust, or the beneficiaries, can be eligible to receive an income stream over a period of time, for no more than 20 years. That income stream typically equals anywhere from 5 percent to 50 percent of the assets of the trust paid out in an annual, semi-annual, quarterly, or monthly payment. Then the remainder of the trust’s assets are paid out to the public or private charity of your choice.
Contact a Charitable Trust Attorney in Las Vegas
Do you have questions about setting up a charitable trust, and the different options that may be available to you? Do not hesitate to get in touch with one of the Las Vegas charitable trusts lawyers at our firm. Contact Ghandi Deeter Blackham Law Offices for more information about how we can assist you.