As a Ventura County estate planning law firm specializing in charitable trusts, our firm commonly recieves questions about the details of charitable trusts. We have a team of experts with the legal knowledge to answer questions about the process of setting up a charitable trust, and what the benefits of proper estate planning can be.
Our firm can provide expert legal services as estate planning attorneys. We are a Southern California based law firm in business since 1985. We specialize in charitable trusts and estate planning matters.
To learn more about charitable trusts, or if you would like a free consultation to learn if a charitable trust is right for you, please do not hesitate to contact us at (805) 482-2282, or e-mail us.
How am I taxed on the annual distributions from the CRT?
Although the CRT is not taxed on its earnings, you are taxed on the distributions you receive from the CRT. Such taxation is somewhat of a flow-through of the income received by, but not taxed to, the CRT. These distributions would be taxable as follows:
– First , as ordinary income,
– Second, as capital gain,
– Third, as other income (such as tax exempt income, and
– Last, as a tax-free distribution of CRT principal.
The amount of these items is the amount for the current year plus any such amounts that the CRT has not previously distributed to you.
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