There are basically two types of trusts and these trusts can be a children’s charity trust, persons with disabilities charity trust, a food charity trust, a medical charity trust, or any kind of charity trust that one would save money for in order to give to people in need.
The two types of trusts are a charitable remainder trust and a charitable lead trust. Both trusts work in the same way in the aspect that they both are capable of giving monies to a charity and they are very beneficial to that charity.
A charitable remainder trust is a trust that the owner of the trust enjoys for the rest of their life. Let’s say that a person owns a very large house and they have put that house into a children’s charity trust. This means that while that person is still living, they get to enjoy that house until their time comes to meet their maker. Then, by the law of the children’s charity trust that the house is under, the house would be turned over to the children’s charity that was designated in the trust.
Then there is the lead trust. The lead trust allows the organization, such as this being a children’s charity trust, to control the asset while the person is alive. And then when the owner dies, the asset then becomes the responsibility of any beneficiaries. One trust is charitable after death and one is charitable during life. For example of the lead trust, let’s say the owner of several large rental houses has given 3 of the house to a children’s charity trust. The three houses can then be used by the charity until the owner dies and the beneficiaries decide what to do with the properties next. Read the rest of this entry »
