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Private Foundations and Charitable Trusts

Giving to charities is important in so many ways.  We assist with tax efficient ways to make such gifts and achieve your charitable objectives.  Some of the charitable entities to accomplish your philanthropic goals include the following:

  • Private Foundation, which is generally a trust established to provide funding for charities for many years into the future (and the client can have his or her family serve as trustee to carry on the philanthropic legacy).
  • Charitable Remainder Unitrust (“CRUT”), which provides a percentage amount (i.e. the unitrust percentage”) to return to the donor (or another) each year for life with the balance at death passing to designated charities.  A major benefit the CRUT offers is an immediate charitable deduction for a portion of the donation based on IRS valuation formulas.
  • Charitable Remainder Annuity Trust (“CRAT”) – same as above, but donor gets a specified dollar amount back each year versus a percentage amount in a CRUT.
  • Charitable Lead Annuity Trust – similar concept to above, but charities get the set dollar amount each year for a set term of years, and the donor’s family, or other designated beneficiaries, get what is left at the end of the term.

All these entities require compliance with certain IRS rules and tax returns must be filed each year.