In this article, we will discuss how charitable giving can affect your estate plan. We will answerthe questions “What is a Charitable Trust in Illinois?” and “What are the Benefits of Charitable Trusts in Illinois?”
What is a Charitable Trust in Illinois?
A charitable trust is a potential part of an estate plan that will allow the donor to give part of their assets to a charity or charities of their choice upon their death. These trusts are unique because they allow the donor to plan to give part of their assets to charity and parts to non-charitable interests such as family, loved ones or other organizations. These are called “split interest” trusts as the assets are split between charities and other parties. People may be interested in charitable trusts if they have been an active part of a charity through their life or have special interest in certain philanthropy. However, there is also other potential benefits to establishing a charitable trust in your estate plan.
What are the Benefits of Charitable Trust in Illinois?
One key benefit to charitable giving trusts is that they can change the way you and your estate are taxed. If you establish a charitable trust, you may be eligible for income tax deductions. These potential tax deductions would depend on the amount of your planned donation. A charitable donation in your trust can also affect your estate taxes. Generally speaking, assets that are given to charity are not included in your estate’s total for taxation and estates with charitable donations may be eligible for tax deductions. This can be highly beneficial to you and your heirs as it will decrease the amount that is removed for taxation, possibly increasing the assets that your loved ones will receive from your trust.
If you are interested other forms of estate planning, you can read our article: Illinois Estate Planning Explained.
If you are in the Chicagoland area and would like to begin an estate plan or learn more, you can make an appointment with us and you may be eligible for a free consultation. Click here to learn more or schedule a time to meet with our Estate Planning attorneys
.avif)
.svg){kind=small}
