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.
Potential downsides of a Charitable Remainder Trust?
The only real downside of a CRT is that it is irrevocable. Other than receiving the annual payout, you cannot get the principal back. In addition, when you are gone the assets go to the charity(ies) you have named, instead of to your heirs, such as your children. Therefore, it is important to be very careful in setting up the CRT, and you should not put all your assets in to a CRT.
However, if you create a CRT and live past a certain point, your family will be better off. This results because you will have saved up and invested so much more because of your extra cash flow from the CRT that such cash invested will far exceed the amount your heirs would have received if you had sold the asset. Furthermore, if you are concerned about an early death, you can protect your heirs through life insurance paid for out of your extra cash flow from the CRT as discussed below.
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