Charitable Trusts: Leaving a Legacy

Legacy Giving

At the end of your life, what kind of legacy will you leave? Those who are able to share their assets with more than just their loved ones should consider establishing a charitable trust. Anchor Wealth Management’s team of experts can give you the guidance and resources you need to ensure your legacy of giving continues long after you have passed.

The Importance of Establishing a Trust

Establishing a trust is not about the value of your assets, but the transition of your estate when you die. You do not have to be a multimillionaire to set up a trust. Ultimately, a trust gives your loved ones financial peace of mind when you are gone. It saves your beneficiaries time, money, and stress, and allows you to control your assets from the grave. We do not recommend using an online, “do it yourself” trust creator to save some cash. In the long run, avoiding a trust professional will cost you time and money. Initially, creating a trust may appear to be pricier than a will, but with the help of our advisors at Anchor Wealth Management, your family will avoid extensive legal fees and the likelihood of your assets being held up in probate court. We can direct you to a team of experts who will ensure your family does not deal with unnecessary stresses when you die.

Why Take Advantage of a Charitable Trust?

A charitable trust allows you to make an impact on society long after you are gone. Giving to a cause that is important to you creates a legacy for yourself and your family. This is your opportunity to turn your passion into purpose and gain tax efficiencies that will allow more of your wealth to reach causes that are important to you. There are several different types of charitable trusts, and we are here to direct you to the professionals and resources that will create a plan that best fits your philanthropic and financial wishes.

When creating an estate plan, choosing a charitable trust gives your money purpose, long after you are gone. The advisors at Anchor Wealth are committed to helping you and your family achieve your financial goals for years to come.

When Can a Charitable Trust Be A Bad Thing? 

Charitable trusts are always initiated with the best of intentions. But sometimes they can actually be a burden to the organization that is designated as the beneficiary of the trust. One of the reasons to consult an advisor before executing a charitable trust is to discuss the expected outcome of the trust and to think through some of the unexpected consequences or benefits. For example, one Anchor client left their land to a land conservation organization that they were passionate about and dictated within the trust that the property would be used as a refuge. Money was also allocated for the refuge to cover the cost of taxes and upkeep associated with the additional land. The gift of the land was very generous, but without thinking through those additional costs of upkeep and maintenance, the gift of the land may have been for not. It could have actually become a financial burden for the conservation organization to take on the property. Our advisors at Anchor Wealth are here to guide you through the process of setting up a charitable trust. As long as your money is invested properly, a trust, and your legacy, can go on forever.

By Kirk Pearson, Jared Clay