What is a charitable trust?

A charitable trust is a type of trust set up to benefit a charity or charitable cause. This type of trust is created when a person (the grantor) transfers assets to a trustee in order to benefit a specific charity or charitable causes. The trust will also dictate how the assets should be used. For example, the trust may state that the money must be used to pay for educational expenses or medical expenses related to a specific charitable cause. The trustee will be responsible for ensuring that the assets are used for their intended purpose. In Arizona, a charitable trust must be established by a written document and must meet certain requirements. These requirements include: the trust must be irrevocable, the purpose of the trust must be stated in clear and unambiguous language, and the trustee must be approved by the court and must follow certain fiduciary duties (this includes an obligation to the charity and its beneficiaries). Charitable trusts can be very beneficial as they provide a way for individuals to support a charity or charitable cause, and can also provide beneficiaries with a reliable source of income. Furthermore, charitable trusts can reduce the grantor’s estate taxes, as the assets in the trust are not included in the estate for taxation purposes. In Arizona, a charitable trust is a great way to ensure that the assets are used for their intended purpose and that the grantor’s wishes are adhered to. The trust provides a reliable source of income to the charity and also may provide the grantor with tax deductions.

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