Exempt Federal Income and Capital Gains Taxes on Funds not used for personal expenses.

Replacing a Private Foundation with a Charitable Remainder Trust

(CRT) in Combination with an Irrevocable Trust Agreement (ILT)

 
Advantages of the CRT/IRT Combination Plan. Here are the seven (7) reasons for forming a ProAdvocate exclusive CRT/IRT Combination Plan in lieu of a Private Foundation.
 

1.) No federal or state income taxes on net trade or business income of Irrevocable Trust due to an offsetting distribution deduction to the Charitable Remainder Trust.  The income distributed to a Charitable Remainder Trust is exempted under the Internal Revenue Code.  The income distribution may be by actual payment or allocation.  An allocation leaves the funds with the ILT.

 
2.) Minimize federal estate tax or state inheritance tax when any member dies.

 
3.)No probate when any member dies concerning the assets contributed to the Irrevocable Trust or Charitable Remainder Trust.

 
4.) Immediate judgment-proofing of income distributed by payment or allocation to the Charitable Remainder Trust.

 
5.) Judgment-proofing of assets contributed to the Irrevocable Trust after four (4) years from the transfer.

 
6.)  Members or founders may have direct and/or indirect control of the entities.

 
7.)  Maintain ultimate privacy of the CRT/IRT trust affairs.