For many, the holidays are a time for giving. But you can donate to your most valuable causes year-round while earning income and tax benefits. Many people do this by turning to different types of gifting trusts and gifting accounts. These can also be structured to support your loved ones as well. So let’s take a look at some of your options.
Charitable Remainder Trust
One common type of gifting trust is called a charitable remainder trust (CRT). With this type of structure, you transfer assets such as cash, stocks, or real estate directly to the trust. At the beginning of the trust term, the trust generates income for your heirs. And what remains at the end of the trust term or after you pass is donated to your chosen designated charities. So it’s a way to support your loved ones as well as charities.
This type of trust may suit families that can use the current income generated by the trust before it passes on to charities.
