You can leave a legacy by donating to charity during your life and you can arrange to have your favorite charities supported long after you pass away. As a part of your Phoenix estate planning process you can donate part of your estate to charity. It can be a wise decision to set up a charitable contribution with your Phoenix estate planning as you can gain tax advantages along with being able to support causes that you believe in. With your Phoenix estate planning you can choose to give money to a charity throughout your lifetime or as a part of your will.


When you are arranging your Phoenix estate planning you should keep in mind the needs of your beneficiaries before setting up a charity option. Any monetary gifts that you make to charities are tax exempt, and gifts can result in income tax deductions. You can set up a revocable or irrevocable trust to give part of your assets to a charity during your Phoenix estate planning process. You can also set up a charitable trust, which can allow you to support both your charity and beneficiaries with an annual income, or just a particular charity.

A charitable remainder trust (CRT) is a particular type of charitable trust that you can set up to provide income for yourself for a fixed number of years. For instance, the charitable trust could provide you with income for 20 years (the maximum amount), and afterward the funds of the trust would be given to a particular charity of your choice. This type of trust can be created during your Phoenix estate planning for a wide range of assets including stocks and bonds, real estate, mutual funds, and more.

There are many benefits to setting up a charitable remainder trust while arranging your Phoenix estate planning, in particular assets that are sold or transferred to a CRT are not subject to capital gains taxes in most cases. A charitable remainder trust has strict IRS rules that must be followed, and it is recommended to consult a professional if you are setting one up in your Phoenix estate planning process.

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