Charitable Trust Drafting Lawyers Montgomery County Maryland
Experienced Maryland trusts and estates law firm
In complex estate plans, trusts plays a major role. The trust should work seemlessly with the other components of your estate plan . As part of a comprehensive estate planning practice, our law firm of Daniel S. Willard, P.C. offers charitable trust drafting services to clients throughout Maryland and the District of Columbia. Dan Willard, an experienced Bethesda trusts attorney works with you to understand your financial position and your goals for your charitable causes and other beneficiaries.
Supporting Your Charitable Causes
A charitable trust is a type of irrevocable trust that can serve two purposes.
Purpose One: Provide money for a charitable purpose. If your passion drives you to support your favorite charitable causes even after your death, the ability to control what happens to your estate in this manner can be just what you want. With or without tax savings, the trust can distribute your assets to your causes under the terms you direct.
Charitable trusts can also have a money multiplier means of supporting a charitable cause by donating appreciated assets to the trust and then direct the trust to sell the assets at a time you believe will maximize their recovery. Done correctly, the sale by the trust will be free of capital gains tax. Transfer through a will commonly gives your beneficiary a similar “stepped up” tax basis but not necessarily at a time of your choosing.
Purpose Two: Tax benefits in certain circumstances. If the charitable trust actually accomplishes the first purpose and is drafted and executed very carefully, it can provide tax advantages and a return to you of some of the assets in the trust in the form of income for you during your lifetime. Like tax shelters of a prior era, many sources have hyped charitable trusts as a tax saving goal in itself. Like those left “holding the bag” when the tax shelter circuses left town, if tax savings are your prime goal, you may end up in multiple audits and lose more money in attorneys fees that you might hope to recover in tax savings. We do not help our clients with charitable trusts if benefitting a charity is not their prime purpose.
At Daniel S. Willard, P.C., we create charitable trusts for clients in Maryland and the District of Columbia. The goal is to use sophisticated asset-protection and tax-planning techniques to help your charity gain the maximum benefit from your trust.
Common types of charitable trusts potential clients ask about include charitable remainder annuity trusts (CRATs) and charitable remainder unitrusts (CRUTs), in which a beneficiary receives an income from the trust for a period of time, with the remainder going to the charity. There are regulatory issues with both these tax vehicles and you should proceed with them only with care.
To help make some combination of your will and trust options work for you, consult an experienced Montgomery County, Maryland trusts lawyer today.
At the Law Office of Daniel S. Willard, P.C., we can advise you on the options more likely to help you achieve your charitable estate planning goals. We thoroughly analyze your estate and work with you to plan to transfer your assets, minimize taxes,
establish guardianships for your children, support personal philanthropic
causes and help protect your loved ones. We can draft trusts that help reflect your goals.
By Dan Willard
Contact the meticulous charitable trust drafting lawyers at the law firm of Daniel S. Willard, P.C.
The Law Office of Daniel S. Willard, P.C. serves clients in Bethesda and throughout Maryland and Washington, D.C. To schedule an appointment, call us at 301-424-1177 or contact us online today.