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


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