What are the types of charitable trusts? There are two main types of charitable trusts – charitable lead trusts (CLTs) and charitable remainder trusts (CRTs).
What are the benefits of a charitable trust?
- Convert an appreciated asset into lifetime income.
- Reduce your current income taxes with charitable income tax deduction.
- Pay no capital gains tax when the asset is sold.
- Reduce or eliminate your estate taxes.
- Gain protection from creditors for the gifted asset.
What is a charitable trust in India? Charitable Trusts are formed in India for one or more of the following reasons: Discharge of the Charitable an/or religious sentiments of the Author, in a way that ensures public benefit. For claiming exemption from Income Tax, as the case may be, in respect of incomes applied to charitable or religious purposes.
What is the difference between a charitable trust and a foundation? A trust allows you to delegate the management of your assets to a third party on behalf of your beneficiaries. A foundation is a legal entity similar to a company, but trusts are legal relationships between the settlors, trustees, and beneficiaries.