A Charitable Trust allows you to leave some or all of your estate to an organization of your choice. You can leave money, stocks, real estate, and other valuable assets, such as artwork. It can be an important part of your estate plan.
You can donate money through other types of trusts, but a Charitable Trust has the primary goal of donating to nonprofit organizations.
Charitable Trust aren’t for everyone, though. For one, they’re a type of irrevocable trust, which means you can’t always make changes to the details of the trust once it’s been created. It also may not be worth the cost if you are only donating small amounts to a charity
Payments from a charitable last for a set period of time. Known as the payment period, this is the lifespan of the trust. To use a real world example, the payment period of the Bill & Melinda Gates Foundation, a Charitable Trust originally created by Bill Gates, lasts until 50 years after the Gates’ deaths.
The payment period (as well as who receives payments) is specified in the trust document. This is a legal document that lays out the details of the trust.