Charitable Trusts Explained | Frequently Asked Questions About Charitable Trusts

Article written by Illinois Attorney Kevin O’Flaherty

In this article we explain charitable trusts and answer frequently asked questions. We discuss:

• What is a charitable trust?;
• What types of organizations qualify as “charitable?” for the purpose of a charitable trust?;
• Who can be a trustee of a charitable trust?;
• Who can be a non-charitable beneficiary of a charitable trust?;
• What are the benefits of charitable trusts?;
• What types of assets are best to donate to a charitable trust?;
• How to create a charitable trust;
• What is the difference between charitable lead trusts and charitable remainder trusts?; and
• Managing a charitable trust.

Charitable trusts are a great way to fulfill philanthropic objectives by allowing individuals to donate to an organization and receive tax benefits, while also generating income for specified beneficiaries. In this article, we’ll review the basics of charitable trusts.

What is a charitable trust?