Now more than ever, people around the globe have taken an interest in helping those facing personal and financial hardships. They realize that aid in whatever form is needed can help to heal the world.
If you have developed an interest in helping others, estate planning allows you to address charitable giving during your lifetime and after you die. Many New Jersey residents have found the act of giving beyond death quite rewarding.
Two types of charitable trusts to consider
You can give cash to charities while you are alive, and your donations will benefit many. However, creating a charitable trust can ensure that your gifts help others once you are gone. Whether you have the means to give now or later, one of the two trusts below may meet your needs:
- Charitable remainder trust: You can arrange to receive an income from this type of trust for a set period or the rest of your life. Whatever assets remain after the document expires will go to the charity (or charities) designated in the trust documents.
- Charitable lead trust: Your favorite charities get first dibs on the assets in this trust. When you do not need to arrange payments for yourself or another, this option will benefit your charity in the present. It works opposite of the remainder trust by paying your charities for however long you like. You can arrange to have any remaining assets go to individuals of your choice when the trust expires.
If you want to bring your philanthropic inclinations to life through a trust, consider increasing your knowledge of estate planning in New Jersey. With guidance, you can help make a difference in the lives of your neighbors far and near.