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What Are The Different Types Of Charitable Trusts In Florida?


An increasing number of Floridians opt for Charitable Trusts as part of their estate plans. A Charitable Trust can help you accomplish many goals. One of the benefits of creating a Charitable Trust is that it helps save on federal income taxes and reduces estate taxes.

Many people choose to set up Charitable Trusts for organizations that provide financial assistance and other services to people in need. If you create a Charitable Trust, you have the option to choose which charities will get your assets.

Consult with a lawyer to determine which type of Charitable Trust is right for you.

What Organizations Qualify as a Beneficiary of Charitable Trusts in Florida?

Not all organizations qualify as beneficiaries of Charitable Trusts in Florida. Under Fla. Stat. § 736.0110, an organization can become a beneficiary of a Charitable Trust is:

  • The organization can receive trust income or principal
  • The organization can receive trust income or principal upon termination of the interests of other distributees
  • The organization can be designated to receive distributions from the Trustor on the Trust’s termination date

A Charitable Trust can help the qualifying organization plan its budget and pay expenses to carry out its mission and benefit those in need. When setting up any type of Charitable Trust, it is important to make sure that the Trust complies with the rules and regulations imposed by the Internal Revenue Service (IRS).

Types of Charitable Trusts in Florida

There are four different types of Charitable Trusts in Florida:

  1. Charitable Lead Unitrust. The qualifying charity is paid income from the Trust for a specified period of time. When the Trust ends, the remaining funds are paid to the Trustor’s heirs.
  2. Charitable Remainder Trust. With this type of Charitable Trust, distributions are made to the qualifying charity when the Trustor dies. The Trustor has a right to sell assets and be free of capital gains taxes during their lifetime, not to mention other tax benefits and deductions.
  3. Charitable Remainder Annuity Trust. With this type of Trust, the Trustor contributes assets to a qualifying charity that pays a fixed amount of money to a named beneficiary in the form of an annuity.
  4. Charitable Remainder Unitrust. If a Trustor creates this type of Charitable Trust, a designated beneficiary is paid income during the Trustor’s life. The remainder of the Trust then goes to the charity.

Consult with an estate planning lawyer to determine the right type of Charitable Trust for your particular situation.

Contact a St. Petersburg Estate Planning Lawyer

There are many options available when creating an estate plan and setting up a Trust in Florida. For this reason, it is vital to speak with a skilled lawyer to help you determine the most beneficial option for your particular situation.

At Legacy Protection Lawyers, LLP, our St. Petersburg estate planning lawyers often advise clients to set up Charitable Trust to reduce estate taxes and enjoy other benefits. However, a Charitable Trust is not the right option for everyone, which is why you should discuss your particular case with a lawyer. Call 727-471-5868 to schedule a case evaluation with our lawyers.

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