How to Set Up Charitable Remainder Trusts With Cash
When you engage in estate planning, setting up a chair table remainder trust can be an effective way to ensure that you have income while you are still alive and help a charity at the same time. With this type of trust, after you pass away, the remainder of your trust goes to charity. If you have a large amount of cash, using it to set up a charitable remainder trust should not be too complicated to handle.
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Instructions
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Draft a trust document. This can be done with the help of an estate planning attorney, with a software package or with a book. A charitable remainder trust is simply a document with the provisions set forth on it. Name the charity that you want to inherit the money. You also will determine how much of the cash you will be entitled to each year in the form of a distribution.
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Choose a trustee to oversee the charitable remainder trust. The trust is irrevocable, so you need someone you can trust to watch over the assets in the trust for you.
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Get the trust documents notarized. This way, the trust is official and will hold up in a court of law if it is contested for some reason.
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Open a bank account in the name of the trust. Deposit the cash into the bank account. Give the bank the name of the trustee who will be watching over the account.
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Tips & Warnings
Do not make the percentage of the annual distribution too high. If you take too much money out of the account while you are still alive, not much will be left over for the charity when you die.
Once you set up the charitable remainder trust, you cannot change it. Make sure that this is what you want to do before going through with it.
