Many people wish to make gifts of money or property to a charitable organization. Charitable trusts use a form of irrevocable trust as the vehicle by which to make their charitable gifts.
- Resolves Uncertainty - allows grantor to defer the gift to charity until after death while grantor continues to receive income from the property.
- Income Tax Savings - obtain immediate federal income tax deduction for part of current value of gift while avoiding long-term capital gains for appreciated property.
- Estate Tax Savings - qualifies for estate and gift tax deductions.