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How is a charitable trust different from other giving?

On Behalf of | Jan 5, 2023 | Estate Planning |

There are lots of ways a Las Vegas resident can give to a charity of their choice.

They could, for example, choose to make a one-time gift or do regular donations while they are still alive.

They also might wish to leave a bequest to their favorite charities in their will.

Forming a charitable trust is another way of supporting one’s favorite causes.

A Nevada resident can create these types of trusts while they are still alive. They have a lot of leeway on how they draft them. In some cases, they also may want to set up a testamentary trust that goes into effect once they die.

What are the advantages of charitable trusts?

While they take a little more effort to set up, charitable trusts offer some important advantages to people.

For one, charitable trusts offer some important tax advantages both to those who create them and to their families.

Charitable trusts also offer non-financial benefits. They can inspire future generations in the family to be generous with their wealth. Donating to charity by way of a trust can also allow a family to create what some might see as a living memorial to the family.

It is also important for people not to lose sight of the fact that trusts can offer family members a greater measure of control over how a charity spends their wealth.

Lifetime giving and leaving a bequest in a will, by contrast, may give a charity more freedom to spend the gift, even if the charity intends to do so in a way the family would not approve of.

Drafting a charitable trust correctly is important and will require legal knowledge and skill. A resident of the greater Las Vegas area who thinks a charitable trust might be right for their situation should speak to an experienced estate planning professional.