Where the combined estates of a couple exceed the federal exemption, the charitable deduction and use of a charitable remainder trust can reduce the federal and Massachusetts estate tax burden, provide adequately for the surviving spouse and other family members, and achieve the grantor’s charitable goals at the death of the survivor.

Such a trust can be funded at the taxpayer’s death. The surviving beneficiary or beneficiaries receive an income interest in the property for life. The property remaining in the trust goes to charity at the income beneficiary’s death. The value of the gift eventually going to the charity qualifies for state and federal estate tax charitable deductions. If the income beneficiary is the grantor’s spouse, the income interest also passes free of tax as marital deduction property.

Charitable giving techniques like CRTs are often used in conjunction with other estate planning. Please call us if you are interested in learning more about these or other advanced estate planning.