Florida residents like you who have decided you want to leave some or all of your assets to charity will need to learn more about the means by which you can do so. We at the Law Offices of Frye & Vazquez, P.L., are here today to discuss exactly that.
Charitable trusts are a trust in which you place (usually liquid) assets to be used by any charity of your choosing. You can have assets sent to multiple charities, or you can have it all sent to one charity. You can even build your own charitable foundation.
There are also two different types of charitable trusts: lead trusts and remainder trusts. With lead trusts, income from the assets go directly to the charity. While the trust is in effect, any income gained off of these assets go to the charity or are split between the charity and your beneficiaries. After the trust terminates, control of the trust reverts to whomever you choose. You also retain control over the assets while you are still alive.
Remainder trusts sign the assets over to a charity or organization for a specific period of time dependent upon your choosing. However, at the time of the trust’s expiration, the charity gets all assets including interest that the account made during its time. The duration of these trusts can last decades or longer after your passing.
If you are considering setting up a charitable trust, or any other sort of trust fund, you may want to take a look at our web page on the creation of trusts. You can learn more about how they work and if they suit your needs.