The type of trust you choose is important and there are many different choices. One type is the Oklahoma Charitable lead trust. This is an irrevocable trust that once established the donor will not be able to modify, terminate, or amend the terms of the trust. The purpose of a charitable lead trust is to provide support to one or more designated trusts for a specific period of time. After that period of time has ended then the remaining assets will be distributed. They can either go back to the grantor or to a beneficiary. The beneficiary does not have to be a charity tough it can be.
Oklahoma Charitable Trusts
An Oklahoma Charitable Lead Trust trust is established with thoughts related to both charitable contributions and tax implications. The charitable contributions should be evident- you are gifting money or assets to charity. The tax implications can be more complex. In certain trust a gift tax may be owed on the remainder that is to be distributed after the charitable trust time period is up.
The grantor may set up a charitable trust in such a way to minimize or eliminate the gift tax that would be owed. The grantor may also set up a charitable lead trust as a way to minimize estate taxes. In a charitable lead trust the estate will be eligible for a tax deduction for the value of the interest donated to charity.
Charitable Trust Considerations
If you are thinking of setting up a Charitable lead trust these are some basic things you will need. First, what charity or charities are going to be your beneficiaries? Second, how are you going to fund the trust: money, stocks, or other assets? Third, how long will the trust last for (usually measured in years) and how much will be paid to each charity annually? Fourth, who will take the remainder of the assets when the trust comes to an end? Finally, who is going to create the trust for you? Trust’s are legal instruments and should be created by someone who knows the laws behind them.
Tulsa Trust Attorney Near You
Estate Planning doesn’t have to be difficult. With help from a Tulsa wills and Trust lawyer you’re sure to protect your assets and reduce crushing tax liability. Not only does a charitable trust work to reduce tax liability and preserve your estate its also a great thing to do for a charity of your choice. Get a free consultation with a charitable trust attorney Today