Charitable Trusts
There are various ways to set up a trust. Each one will serve a different purpose.
Charitable Remainder Trust
A charitable remainder trust is a highly recommended estate planning tool that allows you to donate your assets to Chabad while providing an income stream to you and your family. A charitable remainder trust has significant tax advantages for your children and beneficiaries during your lifetime.
Here’s how a Charitable Remainder Trust can work for you:
Appreciated real estate or securities are often an excellent asset to place in a charitable remainder trust.
You establish a remainder trust that provides income payments to you or your family.
A charitable remainder trust will, in most cases, reduce your estate taxes.
After your passing, the assets are given to Chabad.
This is a significant and important way to leave a meaningful Jewish legacy.
Charitable Lead Trust
A charitable lead trust can be an effective estate planning tool to transfer the assets to your heirs with significant tax advantages, while making a meaningful gift to the Chabad Planned Giving Office.
How Charitable Trusts can work for you:
You can establish a lead trust that will make income payments to Chabad for a predetermined number of years.
After the trust term ends, the assets are distributed to you or your family.
This is an outstanding way to give charity today, eventually leaving the asset to your heirs.
Appreciated real estate is often an excellent asset to place in a charitable trust.
Retained Life Estate
A retained life estate is a strategy that allows you to donate a home to Chabad while retaining the right to live in it for the rest of your life.
You deed your home to Chabad, but retain the right to live there for the rest of your life.
You continue to live on your property for as long as you want and are responsible for the expenses: maintenance fees, insurance, property taxes, repairs, etc.
When you pass, the property is transferred to Chabad.
You are able to receive a substantial tax deduction.
You benefit by knowing your property or vacation home will ensure a Jewish legacy.
If you are considering a charitable lead trust or a retained life estate, or for any information on planned giving, please contact us.