What are charitable trusts and how do they help with estate planning?

Video Transcription:

Charitable trusts are a wonderful tool to utilize when you’re charitably inclined and wish to benefit a charity, but you also wish for your heirs or your children to receive assets from yourself as well. You can set up a charitable trust, if you’ve heard of a charitable remainder unitrust, or charitable annuity trust or CRAT or CRUT, wherein your children, for the rest of their lives, receive an income interest or an annuity interest, and then upon their demise, the remainder of the assets in the trust goes to the charity that you’ve chosen. Another type of charitable remainder trust is a charitable lead trust, and a charitable lead trust gives money on an annual basis to a charity that you’ve selected. Then after a certain term of years, the trust terminates and whatever’s left in the trust is then distributed out to your children.