Carrie’s 20 Days of Tax Tips – Day 5

It could be in your best interest –

If you have a sizeable donation in mind, look at a remainder or lead trust. A remainder trust allows you actually donate property upon your death, but receive a deduction now. Plus, you may receive income for a period of time, including your life time. A lead trust lets you give income to the charity now, receive an income tax deduction now and leave the money to heirs on your death. The deduction is based on an interest rate, which is low right now. This makes the contribution value high. Charitable trusts are also sometimes used as asset-protection devices.

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