What is a charitable remainder trust?
A charitable remainder trust (CRT) is a type of inheritance law in North Carolina that allows individuals to pass along part of their estates to a charity of their choice. The trust is created when the individual transfers assets into the trust and the charity is named as the beneficiary. The trust then pays out income to the individual or designated beneficiaries during their lifetime. Upon the individual’s death, the trust passes the remaining assets to the charity. CRTs can provide significant tax deductions for those who create the trust. In addition, the trust allows the individual to remain in control of their assets and decide how they are distributed upon their death. This can be especially beneficial for those wishing to avoid probate or provide for their descendants. CRTs can offer other benefits, such as increasing the size of the estate for the charity, providing forpartial income tax exemption, and allowing the individual to earmark specific assets for the charity. They can also be used for retirement planning and other forms of estate planning. Overall, a charitable remainder trust is a useful and beneficial type of inheritance law in North Carolina. It allows individuals to provide for their loved ones while also helping to support a charity of their choice.
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