There are many different estate planning tools that you might use to accomplish your goals both during your life happy pass away, and investigating all of your options is the only way to decide which strategies are the most appropriate for you.
The charitable remainder trust tends to work well for those individuals who recognize the tax benefits offered by this vehicle, possess highly appreciated assets, want to give back to charity, and want to achieve some kind of income stream off of the assets that they possess. A charitable remainder trust is irrevocable, meaning that the terms of the trust cannot be altered once the trust is active. This is why it is important to hire a New York trust and estate planning attorney to help craft the documents related to a charitable remainder trust.
The assets and property belonging to an individual are transferred into a charitable remainder trusts, and the charity maintains the administration role within the trust. The assets are managed or invested by the charity. That charity then pays you or your beneficiary a portion of the income generated by the trust either for a certain period or for the remainder of your life. At the end of this period or at the end of your life, charity whatever remains of the trust principal.
By establishing this kind of trust, you are able to avoid capital gains tax on the donated assets. You may also be eligible to declare an income tax deduction based on the fair market value of the remainder interest inside the trust.