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


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