During the estate planning process, there are many different paths you can take in dividing your property and assets. While many people choose to leave all of their money to family and friends, others choose to include charitable contributions as a part of an estate plan. A Trust is often an effective way to transfer your property while avoiding probate. Certain types of Trusts also help to reduce or avoid taxes. A Charitable Trust is one option you may consider if you want to make charitable giving a part of your estate. If you are thinking of establishing a Charitable Trust in the state of Minnesota, then our lawyers are here to help you through the process.
Minnesota Charitable Trusts
A charitable trust is an effective way for an individual to make charitable giving part of an estate plan. When you establish a charitable trust, you designate the property and assets that you would like to pass on to a given charity. With a charitable trust, there is no need for probate. The trust establishes a charity as the beneficiary for the given property, and that charity will receive the property from that trust when you die.
A charitable trust is a type of irrevocable trust, which means it cannot be changed or dissolved. You may establish a charitable trust while you are alive, or it may be established as part of your Will upon your death.
When you establish the trust, you also determine how the property will be distributed. Some plans will transfer all of the property at once, while others will designate a specific percentage or fixed amount to be distributed each year. A charitable trust affords an individual a lot of options. In many cases, it also drastically reduces (or even eliminates) taxes associated with the transfer of property.
Receiving a charitable trust often requires some paperwork. According to Minnesota law, a charitable trust with gross assets of $25,000 or more during a taxable year must register with the Attorney General within three months of receiving the trust property. After the initial filing, the charitable trust must continue to file each year its gross assets are $25,000 or more.
If you are receiving a charitable trust, then our lawyers are also here to help you ensure that your trust is properly filed.
If you are planning to establish a Charitable Trust, or any other type of Trust in the state of Minnesota, our attorneys are here to assist you. Establishing a valid Trust requires a thorough understanding of the law. Contact the Brown Law Offices, P.A. today at 763-323-6555 for a free consultation.