What is a Charitable Trust?
Similar to other trusts, a charitable trust is a legal arrangement whereby a trustee holds property and uses it for the benefit of the person or organization you name – the beneficiary. The trustee receives the cash, securities, or other property from you, along with exact instructions for making the gift to the charity on your behalf. Gifts are possible during your lifetime or through your will.
Why use a charitable trust?
Using a trustee as an intermediary allows you to split the ownership interest in the trust’s assets between a charity and another beneficiary. And that means valuable added tax benefits. By splitting the ownership of your gift, you define the period during which the charity and the other beneficiary benefit from the gift.