What Types of Charitable Trusts Can I Use in My Estate Plan?

Web Admin - Friday, May 31, 2019
Kenilworth charitable trusts attorneyA trust is a legal agreement created by the owner of assets or property that designates an individual (a trustee) to manage the assets and distribute them to the beneficiaries named in the trust. Assets can be distributed either during the life of the person who creates the trust (known as the grantor) or after their death. In many cases, a grantor chooses to pass their assets to relatives or close friends; however, some may also wish to support a cause they believe in by naming a charity as a beneficiary. In these cases, charitable trusts can be used, and they typically fall into one of two categories: charitable lead trusts and charitable remainder trusts.

Charitable Lead Trusts

This type of charitable trust has a time limit tied to the funding that is provided to one or more charities. Once the time period ends, the rest of the assets are given to non-charitable beneficiaries. The process begins with an initial donation to fund the trust. Charitable lead trusts do not require a minimum or maximum charitable payment amount, and a grantor may prefer to make a cash contribution to be eligible for immediate tax deductions. The payments will then be sent to at least one charity of the grantor’s choosing. This must be done at least once a year for a specific number of years or for the remainder of the lifespan of the grantor. Once the trust’s term has ended, the rest of the funds are given to the beneficiaries chosen by the grantor.

Charitable Remainder Trusts

Many will choose charitable remainder trusts because they can provide regular income for the grantor or their beneficiaries in addition to donating assets to charity. This type of trust is almost the exact opposite of a lead trust, with assets being distributed to beneficiaries during the term of the trust, and any remaining assets being donated to charity after the grantor’s death. 

The first step in creating a charitable remainder trust is making a partially tax-deductible donation. This can include cash, stocks, real estate, or private business interests. During the term of the trust or the remainder of the grantor’s life, assets held in the trust may be distributed to beneficiaries, such as the grantor’s loved ones or even the grantor themselves. Beneficiaries can receive income only once per year or as frequently as every month. After the grantor’s death, the selected charity or charities will receive the remainder of the assets. 

Contact an Arlington Heights Charitable Trusts Lawyer

Estate planning is an extremely complicated process that requires extensive attention to detail. While charitable trusts can provide a number of benefits, it is important to ensure that the correct steps are followed when creating this type of trust. At Drost, Gilbert, Andrew & Apicella, LLC, we can help you determine which trusts will be best for you and your beneficiaries. Contact a Long Grove estate planning attorney at 847-934-6000 for a free consultation.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Recent Posts


premises liability digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers real estate attorney traffic offenses trench injuries Rolling Meadows employment attorney Palatine traffic lawyer swimming pools Des Plaines civil attorney Inverness accident lawyer personal injury law firm Rolling Meadows litigation lawyer Rolling Meadows car accident lawyers Illinois elder law attorney living wills Chicago will attorney, social media platforms, Illinois estate planning lawyer, Arlington Heights car accident lawyer trust payments probate fees Illinois DUI attorney spinal cord injury dram shop law Rolling Meadows insurance lawyer Retaliatory Discharge pet law small business Illinois traffic ticket lawyer Barrington medical malpractice lawyers Illinois real estate trucking accident lawyers insurance claim denials Chicago will attorney digital assets insurance claim delay Rolling Meadows insurance attorney low-ball insurance settlement controlled substance Arlington Heights employment attorney Mt Prospect Attorney financial advisors condo association Illinois small business food poisoning Schaumburg traffic lawyer Chicago lawyer motorcycle accident lawyer blended families Illinois insurance claim attorney special needs trust Crystal Lake pet attorney real estate zoning Palatine civil attorney Chicago insurance law firm drug possession BAIID Barrington employment law attorney workplace sexual harassment Illinois real estate leasing traumatic brain injury digital media accounts, estate planning, Arlington Heights estate planning attorney, Crystal Lake medical malpractice lawyer Chicago trucking accident attorney Legal Info Palatine injury attorney Deer Park workers compensation lawyer Illinois injury lawyer personal injury Barrington estate planning lawyer Illinois workers compensation attorney Deer Park traffic lawyer healthcare Illinois estate planning attorney car crash preventable medical errors rollover accidents deed transfer Chicago employment attorney Illinois Probate Act of 1975 unpaid overtime traffic tickets civil litigation attorney federal crimes commercial leasing liability claims Thanksgiving unpaid assessment clemency Illinois estate planning life insurance lawyer Arlington Heights injury attorney employee rights Long Grove real estate attorney civil rights violation probate process insurance attorney Illinois traffic laws Rolling Meadows medical malpractice lawyers defective products lawyer crossover accidents living trust rent to own real estate contracts Illinois Sales Representative Act Illinois workers compensation lawyer Rolling Meadows marijuana attorney fault based insurance installment contracts owner responsibility Illinois home inspection automated cars Barrington personal injury attorney Rolling Meadows traffic attorney Long Grove estate planning attorney personal injury accidents traffic violations golf accidents insurance negligence Schaumburg corporate attorney Arlington Heights personal injury lawyer car accident lawyer real estate contract estate planning lawyer field sobriety test revenge porn Arlington Heights wills and trusts attorneys Barrington drug crime attorney Deer Park accident attorney Super Mario license defective products Illinois employment law firm pedestrian injuries, pedestrian fatality liability Palatine employment law lawyer estate attorney Affordable Care Act Palatine drug lawyer BAC Des Plaines DUI attorney Inverness probate lawyer civil litigation startup company Barrington workers compensation attorney estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers natural gas changes to mortgage law child safety Schaumburg estate planning attorney Rolling Meadows estate planning attorney forming a corporation in Illinois Illinois medical malpractice claim Rolling Meadows tax attorney marijuana crimes attorney Illinois Wage Payment and Collection Act employment contract Rolling Meadows business lawyer Illinois traffic attorney Barrington litigation attorney Barrington real estate lawyer Inverness corporate attorney traffic crimes Des Plaines pet law attorney traffic deaths preventing accidents Crystal Lake employment attorney life insurance Illinois construction accident attorney probate claims Barrington estate planning attorney uninsured motorist Schaumburg employment law attorneys creditors drug crimes ACA capital gains tax Illinois mortgages murder charges Schaumburg construction accident lawyer Illinois probate lawyer personal injury claim Illinois job attorney Long Grove real estate lawyer Crystal Lake employment law attorney living trust benefits Illinois tax attorney driving Illinois red light cameras Inverness personal injury attorney Schaumburg drug defense lawyer Crystal Lake personal injury attorney Illinois pedestrian accident attorney life insurance policy Schaumburg Attorney Exclusions murder defense senior citizens Arlington Heights insurance attorney federal regulations for LLCs Des Plaines collections attorney drunk driving Rolling Meadows DUI lawyer Rolling Meadows employment law attorneys Palatine trusts lawyer wage theft attorney fees Schaumburg real estate lawyer denied insurance claims rest breaks wills medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers bad faith insurance claims Crystal Lake law firm Palatine corporate attorney Illinois motorcycle accident lawyer whistleblower protections Palatine probate lawyer commercial real estate Illinois driving without license Illinois Human Rights Act Chicago employment lawyer first degree murder Buffalo Grove traffic lawyers Rolling Meadows accident lawyer bike accident PTSD LLCs DUI attorney Schaumburg employment attorney social media after death insurance claim dispute insurance denial appeals traffic violations defense workers comp Crystal Lake injury attorney estate planning Forcible Entry wills and trusts digital information insurance claims Illinois trucking safety construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Illinois corporate lawyer involuntary manslaughter Crystal Lake personal injury lawyer employees Arlington Heights pedestrian accidents Barrington civil litigation attorney fiduciary rule delay Des Plaines Traffic Lawyer Rolling Meadows criminal attorney dog bites Rolling Meadows insurance dispute lawyers commercial leases Crystal Lake traffic attorney Deer Park medical malpractice attorney Deer Park employment law attorney cell phone traffic laws Des Plaines real estate attorney estate planning for college students Illinois medical malpractice attorney head on collisions right to work Detainer Actions products liability personal injury lawyer distracted driving accidents Long Grove wills and trusts attorneys Buffalo Grove employment lawyer Crystal Lake civil litigation lawyer nursing home negligence modern family estate planning insurance agent negligence Buffalo Grove probate lawyer license reinstatement car crash injuries Rolling Meadows real estate attorney in terrorem provision health insurance dispute Arlington Heights Traffic Lawyer hiring employees insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Illinois civil litigation lawyer Illinois jet ski accident lawyer Mount Prospect wills and trusts lawyers Employment Discrimination Law Illinois employment lawyer pay when paid contract Buffalo Grove injury lawyer unauthorized overtime corporate law Buffalo Grove personal injury lawyer Buffalo Grove criminal defense lawyer slip and fall llinois Real Estate Lawyers Association Kenilworth estate planning attorney sole proprietorship Palatine insurance lawyer filing a medical malpractice claim boating DUI minimum wage Crystal Lake car accident lawyer ObamaCare Buffalo Grove real estate attorney Schaumburg insurance lawyers underage DUI Schaumburg Landlord Tenant Ordinance Illinois boating accident lawyer Policy Cancellation Palatine civil litigation lawyer Barrington employment law firm Illinois lawyer wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Illinois pet lawyer cell phone tower data accidental death benefits manufacturing insurance claim denial motorcycle accident Illinois personal injury lawyers drunk driving statistics landlord tenant law unfunded trust probate lawyer Illinois employment law Arlington Heights criminal lawyer Buffalo Grove personal injury attorney dealing with problem employees Jay Andrew Arlington Heights trucking lawyer Crystal lake insurance dispute attorney Schaumburg elder law lawyer TBI Kenilworth estate planning attorneys Buffalo Grove insurance claim dispute lawyers fiduciary rule loss of consortium comparative negligence Illinois criminal defense attorney living trust vs will Barrington injury attorney DUI defense privacy Crystal Lake pedestrian accident lawyer icy parking lots pain and suffering employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, texting and driving Food and Drug Administration's Food Safety Modernization Act Rolling Meadows personal injury lawyers institutional trustee drugs rollover car crashes vacation home fines insurance dispute attorney medical research Liquor Control Act Illinois insurance claims lawyers homestead rights Schaumburg personal injury attorney hands free device Des Plaines injury law firm Barrington employment attorney Arlington Heights wills and trusts lawyer Barrington attorney CAM Chicago corporate attorney underinsured motorist Mount Prospect elder law attorney employee misclassification Des Plaines accident attorney Illinois wills and trusts Crystal Lake criminal defense attorney Inverness DUI lawyer Illinois law pedestrian accident Chicago insurance claim attorneys foreclosure Fourth of July ken apicella Des Plaines traffic accidents DMV overtime violations Palatine Attorney brain injury workers compensation traumatic brain injuries compensatory time Barrington business law firm Chicago attorney Rolling Meadows Traffic Lawyer Arlington Heights TBI attorney Arlington Heights car crash attorneys DUI Palatine personal injury lawyer Long Grove estate planning attorneys power of attorney Self-Directed IRA Accounts Illinois employment law attorney anesthesia errors Schaumburg estate attorney auto accidents Illinois LLC creation Deer Park criminal attorney Palatine construction attorney overtime pay college kids foreclosed rental property trucking accidents cell phone accidents Illinois insurance lawyer Schaumburg wrongful death attorney business litigation Arlington Heights personal injury attorney Illinois speeding lawyer Des Plaines motorcycle accident attorney guardianship attorney no contest clauses construction accidents Illinois employment law attorneys Palatine employment lawyer Barrington criminal defense lawyer Buffalo Grove traffic attorney Des Plaines personal injury attorney FMLA Illinois registered agent insurance agents jet ski Schaumburg criminal law attorney car collision trusts Whistleblower Claims Palatine real estate lawyer Illinois insurance attorney gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys employee discrimination denial of life insurance investment property truck collisions work unions criminal record paid sick leave car accident lawyers caregiver Crystal Lake business law attorneys BUI car accident Rolling Meadows criminal lawyer Illinois real estate lawyer Inverness estate planning lawyer tax attorney Illinois traffic attorneys Home Sale Contingencies Illinois living will Illinois workplace discrimination attorney Crystal Lake tax lawyer personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys vacation home employment lawyer South Barrington real estate lawyer real estate attorneys Long Grove estate planning Rolling Meadows traffic law firm criminal law breathalyzer test Rolling Meadows Barrington boating accident attorney Des Plaines insurance attorney Schaumburg personal injury lawyer Rolling Meadows probate lawyer Rolling Meadows personal injury lawyer eluding a police officer Crystal Lake medical malpractice law firm Chicago traffic lawyer Illinois collections attorney Inverness real estate attorney Buffalo Grove car accident lawyer DGAA Des Plaines personal injury lawyers blood alcohol content Riverwoods estate planning lawyer murder Rolling Meadows Attorney Palatine workers compensation lawyer reckless homicide Crystal Lake bike accident lawyer Family Medical Leave Act dynasty trusts Deer Park motorcycle accident lawyer spinal cord injuries Illinois insurance disputes car crashes criminal residential real estate Schaumburg probate attorney Arlington Heights medical malpractice lawyer Des Plaines claims law firm life insurance claims contracts Illinois trusts attorney FSLA personal injury claims Illinois defective products attorney jet ski accidents license suspension breach of contract construction contracts irrevocable trust Buffalo Grove law firm Illinois personal injury attorney real estate expungement Illinois personal injury lawyer Illinois employment laws Chicago car accident lawyer Rolling Meadows employment law attorney Palatine estate planning lawyer Chicago estate planning pizza emoji Transfer on Death Instrument suspended license medical marijuana Class A misdemeanor advance healthcare directive Arlington Heights accident attorney mass shooting drug crimes lawyer pedestrian accidents privacy laws Illinois business lawyer Rolling Meadows personal injury attorney real estate lawyer elder law insurance disputes Arlington Heights wills and trusts attorney loopholes estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, medical malpractice claims insurance adjusters Barrington criminal lawyer Federal Food Drug and Cosmetic Act Illinois employee rights attorney. probate subcontractor car accidents Chicago biking tips IRELA real estate closing personal injury attorney meal breaks underfunded trust back injuries Des Plaines personal injury lawyer income distribution deducation Illinois rollover accident lawyers pedestrian-automobile accident Crystal Lake estate planning lawyer Arlington Heights traffic attorney South Barrington real estate attorney speeding sexual harassment Crystal Lake will lawyer Chicago estate planning lawyer Arlington Heights tax lawyer product liability Inverness injury lawyer Do Not Resuscitate employment law, Illinois employment laws insurance dispute Barrington personal injury lawyer Illinois personal injury pet bites rumble strips Illinois workplace lawyer Inverness traffic law firm Attorney Ken Apicella Crystal Lake accident attorney Home Remodeling Repair Act digital evidence Illinois bicycle safety Deer Park personal injury lawyer insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys job lawyers Crystal Lake medical malpractice attorneys wrongful termination workers compensation benefits healthcare claims employment law Arlington Heights employment law attorneys Colin H. Gilbert Palatine criminal defense lawyer estate planning attorney Illinois Workers’ Compensation Commission criminal defense Palatine employment attorney medical malpractice compensation medical malpractice problem employees Illinois wills and trusts attorneys Barrington Traffic Lawyer Schaumburg personal injury lawyers Arlington Heights real estate lawyer IRA trust transfer bicycle accidents independent contractor medication errors pregnant women mortgage Schaumburg injury lawyer Buffalo Grove medical malpractice lawyers Crystal Lake car accident attorney Barrington Illinois estate planning lawyer Arlington Heights wills and trusts lawyers Illinois insurance claim dispute lawyers Schaumburg car accident attorney Illinois medical malpractice lawyers internet Palatine punch death Inverness elder law lawyer Joliet general practice lawyers School Visitation Rights Act GM ignition switches holiday statistics license revocation Inverness insurance attorney home inspection lawyer trauma after an accident comp time taxes Illinois insurance claim dispute lawyer trustee boating under the influence texting while driving Buffalo Grove corporate attorney Des Plaines drug lawyer Inverness civil lawyer surgical mistakes bicycle dooring accidents power of attorney for healthcare Colin Gilbert elder abuse Illinois Transfer on Death Instrument Kenilworth estate planning lawyer Illinois employment attorneys Des Plaines criminal attorney Arlington Heights estate planning attorney Crystal Lake insurance lawyer DNR natural gas explosion Rolling Meadows drug defense attorney landlord employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Illinois traffic accident lawyer new real estate form Schaumburg civil litigation attorney estate tax Palatine elder law attorney sexual images DUI penalities probate claims process Illinois wrongful termination lawyer Schaumburg criminal attorney agent employment attorney Deer Park real estate law firm Deer Park DUI lawyer estate plan Arlington Heights Attorney insurance denials wrongful death IRA benefits Deer Park traffic accident attorney consent to a search Illinois attorney Inverness real estate lawyer hit and run accident Rolling Meadows boating crash lawyer Palatine business attorney denied insurance claim Mount Prospect real estate lawyer Palatine corporate law attorneys Illinois business law atorneys Des Plaines medical malpractice attorney Des Plaines tax law firm distracted driving accident victims deadly crashes boating accidents gift taxes Illinois will lawyer estate planning trusts operating agreements condo Arlington Heights lawyer Crystal Lake employment lawyer drug crime disability benefits appealing an insurance claim Illinois insurance dispute lawyers Des Plaines drug crimes lawyer Des Plaines real estate lawyer severance agreements Schaumburg estate planning lawyer Illinois estate planning law firm Palatine law firm fatal car accidents Rolling Meadows insurance dispute lawyers, insurance dispute slip and fall accidents caretaker rights Palatine traffic accidents POA Illinois car accident attorney Illinois medical malpractice case Crystal Lake traffic lawyer Schaumburg medical malpractice lawyer insurance claim marijuana Fair Labor Standards Act liens Illinois Smoke Detector Act insurance claim dispute attorney Rolling Meadows corporate lawyer IRS