Trusts, in various forms, have been used for holding, managing and distributing property since at least the middle ages. In our modern times, trusts are commonly used in estate planning since they serve so many purposes.
For example, property that you hold in trust passes at your death without probate court procedures. Should you become incapacitated during life through illness or accident, your successor trustee can manage your property without a probate court procedure to appoint a guardian for you and your property. Trust arrangements also may eliminate or at least reduce estate tax.
You can also use trusts to distribute some of your estate to the Church through your parish, the Archdiocese of Detroit Endowment Foundation, Sacred heart Major Seminary, another archdiocesan institutions or your favorite charity. Congress in the Internal Revenue Code has authorized two types of trusts that allow you to make significant charitable gifts at reduced tax cost: charitable lead trusts and charitable remainder trusts. In addition to leaving a legacy to carry on the ministries of the Church or charity, you may also realize personal cash flow and other investment benefits by transferring property to a charitable trust.
The material presented on these pages is for your general information on stewardship, estate planning and charitable giving, and is not intended as legal advice. You should consult your attorney and tax and financial advisors for specific transactions of the points illustrated here.
