WHAT IS A LIFETRUST
A LIFETrust is a specially designed pooled income fund. A pooled income fund is an Internal Revenue Code sanctioned trust (Code Section 642(c)(5)) that provides lifetime income to the donor (and/or individuals the donor selects) with the remainder passing at death to the public charities that the donor designates.
Traditional pooled income funds provide the following benefits:
- An immediate charitable contribution tax deduction
- No taxes on donated appreciated property (so that there is more to invest)
- Lifetime income for the selected income beneficiaries
- Societal benefits though the gift of the charitable remainder
- No ongoing administration filings or costs
- Significantly larger charitable contribution tax deduction
- Significantly higher annual lifetime income objective
- Better tax treatment of the annual income, increasing the after-tax benefit
- Much more flexibility in selecting income beneficiaries. Name any individual you want.
- More flexibility in selecting which public charity(ies) receives the remainder benefit, including a donor advised fund
- More flexibility regarding contributed assets
Let us show you how a LIFETrust can benefit you and the people you care about.
The site provides educational information. It is not professional tax or legal advice. Consult with your own professional advisor.