Charitable Remainder Trust

This planning tool is implemented through one’s Will or a trust created during one’s lifetime by donating assets or cash to the trust. The remainder beneficiary is a charity or group of charities. If the trust is created during the lifetime of an individual, the income benefit is retained by the individual establishing the trust and his or her spouse. If the trust is created by a Will the income benefit goes to the specific beneficiaries named in the Will. These individuals receive the income for their life or a specified period of time. After the expiration of the income interest, the remainder beneficiary (charity) receives the trust benefit. This planning tool saves income tax if done as a lifetime trust or estate taxes if done as a part of a testamentary gift. The present value of the remainder interest is valued using the approved IRS tables. The individual establishing a lifetime trust receives an income tax deduction. Similarly an estate tax deduction is received by the estate of the individual establishing the trust under his or her Will.

Thomas E. Raines, PC represents clients throughout the Atlanta metro area: Fulton County, Cobb County, Clayton County, Dekalb County, Forsyth County, and Gwinnett County, including the cities of Norcross, Alpharetta, Roswell, Sandy Springs, Johns Creek, Marietta, Decatur, Lilburn, Lawrenceville, and Cumming. Contact Thomas E. Raines, PC today.

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