While there may be many who feel it essential to prepare a strategy to protect their future interests, knowing how best to achieve such a goal might prove another matter altogether. With various estate planning options to consider, each of which may offer its own potential benefits, choosing the best path could seem somewhat intimidating at times. Individuals in Louisiana might find that seeking insight on available options such as charitable remainder trusts could prove integral to helping them prepare to create a plan that centers around their wishes for the future.
According to experts, a charitable remainder trust is a type of trust that allows a person to contribute assets into the account while also providing one with certain tax benefits. Those who give assets to charitable beneficiaries may be eligible to file for partial deductions on their taxes. While some assets may go to charity, this type of trust may also allow a person to receive a stream of income from the trust, or to choose another party to receive such benefits.
It may also be helpful to know that there are two main types of charitable remainder trusts. Charitable remainder annuity trusts will distribute a fixed portion of assets each year, while charitable remainder unitrusts may distribute assets based on percentages of the trust’s balance. Experts also state that once the grantor passes on, any remaining assets within the trust may be distributed to the charities listed as beneficiaries.
Evaluating the options
Charitable remainder trusts are one of many available estate planning options to consider when creating a strategy to safeguard one’s wishes. Individuals who wish to know more about all the available options and the possible benefits of each in turn may find it helpful to consult with an attorney for guidance in choosing a path. Such advice could prove vital to helping a person in Louisiana make informed choices about the available options and work toward creating a plan that focuses on his or her preferences and needs.