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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35351  
Subject: Re: Charitable Remainder Trusts Date: 12/23/2006 4:07 PM
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"if you want to give your inheritance to your kids, a CRAT isn't for you."

But I have heard that CRATs can be set up to pay benefits to multiple genrations or for years after your death if you want (very much like an annuity). But it still comes down to actuarial calculations to figure out how much the charity will get. If the income is not sufficient to pay all the beneficiaries no deductions. But if the income source fails and the charity doesn't get what was expected years ago when the trust was set up, what happens? Can the IRS come back at the heirs and recapture the deduction? Maybe for a few years, but probably not indefinitely.

I am no expert on these for sure, but I gather you can be almost as creative as you like in setting up the payout system and who gets benefits under what circumstances. State laws and IRS rules must be complied with. Otherwise, the sky is the limit.

Visit that famous Philadelphia lawyer for a few ideas and some great fees to pay.
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