Yes, Even Wombats Can Benefit from a Charitable Trust

12:44 pm Uncategorized

In the news this week:  anonymous American leaves $8 million to an Australian wombat rehab and rescue group.

The Wombat Awareness Organization (WAO) is reportedly to receive $1 million a year for the next eight years as the beneficiary of an American’s estate.  The American man – whose family requested anonymity – visited the WAO some years ago and was obviously taken with the plight of this fuzzy and potentially endangered Australian marsupial.

Not only do we not know his name, we also don’t know if the wombats were the beneficiaries of a provision in his will or a charitable trust.

Do you have a favorite organization that you would like to leave money to and still enjoy some tax advantages for you and your heirs?  Then you should consider setting up a charitable trust.

The benefits of a charitable trust:

  • You can take an income tax deduction for the value of your charitable gift over the next five years.
  • Upon your death, the trust property goes to the charity – since it is no longer a part of your estate, it is not subject to estate taxes.
  • Appreciated property can be turned into cash without paying capital gains tax on the profit.
  • You can receive income from the trust during your lifetime, via either a fixed annuity or as a percentage of the trust assets.

To learn more about setting up a California charitable trust, contact our Newport Beach estate planning law firm.

Contact us today for individualized planning strategies to meet your unique needs.

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