Using Decades Of Experience To Protect Your Legacy

Tax Planning Advantages of Charitable Trusts

State and federal tax laws change periodically, and it is critical that an estate planning attorney keep up to date with the laws that affect inheritance and gifts, as well as income tax consequences.

A charitable trust is a legal means to be charitable and achieve tax benefits at the same time. The Internal Revenue Service code is very specific about the ways in which a charitable trust should be formed and the ways in which it can be used.

I have been an estate planning attorney for more than 30 years, and have set up many charitable giving trusts as part of an overall estate planning strategy. If you understand the advantages and disadvantages, it can be an excellent tool to accomplish your objectives.

If you have estate planning and tax planning needs, contact San Jose charitable giving attorney Robert A. Froehlich or call (408) 364-1234 for a free initial consultation.

Santa Clara County Charitable Trust Lawyer Handling Tax Exempt Trusts and Family Foundations

Charitable trusts and family foundations work to keep assets or property within the family by establishing a charity that is controlled by the family. There are two ways in which a family foundation and charitable trust may work:

  • If you or your family owes income or estate taxes, a family foundation could be created to avoid these taxes. Typically a private foundation is formed as a corporation controlled by you or your family. The foundation could generate tax free income that could be used in a variety of ways to benefit both charity and family.
  • Charitable (tax exempt) trust example: If you have real estate worth $900,000 and sell it outright, you would pay capital gains tax on the sale. If you create a tax exempt trust and transfer the real estate to the trust, there are no capital gains taxes to pay. You would be entitled to receive a substantial income for your lifetime.

The tax benefits do not necessarily end when you die. They could go on indefinitely.

An old charitable trust may not take advantage of new tax laws. Contact our law office to have your existing trust reviewed.

More Than 30 Years of Estate Planning Experience

I focus my legal practice on estate planning, tax planning and probate, and would be happy to help you accomplish your legal objectives. Contact Robert A. Froehlich, Attorney at Law, for a free initial consultation or call (408) 364-1234 to schedule an initial meeting.

Located in San Jose, California, Robert A. Froehlich, Attorney at Law, does estate planning for clients throughout Silicon Valley and Northern California, including Palo Alto, Fremont, Mountain View, Los Gatos, Sunnyvale, San Francisco, Redwood City and Milpitas and elsewhere in Santa Clara County, San Mateo County, Santa Cruz, Alameda County and San Francisco County.