Charitable Trusts are highly versatile legal entities designed to manage assets for the mutual benefit of a donor, their beneficiaries, and a qualified 501(c)(3) nonprofit organization. These irrevocable trusts come in two primary structures: Charitable Remainder Trusts (CRTs), which provide a steady stream of income to the donor or their heirs for a specified term before transferring the remaining principal to the charity, and Charitable Lead Trusts (CLTs), which do the opposite by paying income to the charity first for a set duration before passing the remaining assets back to the donor or their beneficiaries.

 

By shifting highly appreciated assets - such as real estate or stocks - into a charitable trust, you can completely avoid immediate capital gains taxes, secure an immediate partial income tax deduction, and substantially reduce your taxable estate, making it a cornerstone of sophisticated wealth management and legacy planning.

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We've included resource links below to set up your Charitable Trust with Fidelity.