What is a charitable trust?
A charitable trust is a trust created to provide charitable benefits to the public. In Florida, charitable trusts are regulated by the state’s inheritance law. Charitable trusts are created for the purpose of providing benefits to persons or entities that are considered legitimate public charities, such as churches, schools, hospitals, or other organizations that provide public benefit. The trust must have certain elements in order for it to be considered a charitable trust. These include having an ascertainable charitable purpose, a charitable beneficiary, and a trustee or trustees to manage the trust. In most cases, the assets of the trust must be dedicated to the charitable purpose. The purpose of the trust is typically determined by the terms of the trust document when it is created. This document can outline the specifics of the purpose, such as which charity or charities the trust will benefit, the types of investments the trust can make, and how the proceeds will be distributed. The trustee or trustees also need to be appointed and will be responsible for managing the trust according to the terms of the trust document and in accordance with the law. In Florida, a charitable trust can provide the public with tax benefits. Generally, donors may get a charitable tax deduction for contributions to a charitable trust and the trust itself may be exempt from certain taxes. Charitable trusts also provide a way for donors to ensure their assets will benefit a cause that is important to them.
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