Charitable Trusts

Charitable Trusts can take various forms, each serving specific purposes. Let’s explore a few of them:

1. Charitable Remainder Trusts (CRTs):

   • Purpose: CRTs allow you to donate assets to a trust while retaining an income stream during your lifetime.

   • How It Works: You contribute assets to the trust, which generates income. You or your beneficiaries receive this income during the trust term. Afterward, the remaining funds go to the designated charity or charities.

   • Benefits: Tax deductions, reduced estate taxes, and ongoing support for charitable causes.

 

2. Charitable Lead Trusts (CLTs):

   • Purpose: CLTs prioritize charitable donations during the trust term, benefiting chosen charities.

   • How It Works: Assets are donated to the trust, which generates income for the specified charities. At the end of the term (usually 10+ years), the remaining funds revert to you or your beneficiaries.

   • Advantages: Reduced estate taxes, tax-free income for heirs, and support for charitable causes.

 

3. Pooled Income Trusts:

   • Purpose: These trusts pool contributions from multiple donors to create a larger fund.

   • How It Works: Donors contribute assets, and the trust invests them collectively. Income generated benefits all participants, including the designated charities.

   • Benefits: Shared investment opportunities, professional management, and support for charitable endeavors.

Remember that each type of charitable trust has unique features and implications. We can help you choose the best fit for your philanthropic goals and financial planning

 

In case you need our services, please write to support@jlnrco.com or call +91 76766 15955

 

Registration

Charitable Trusts can be set up in three different forms, namely

• Register a trust under the Indian Trust Act (register the trust at sub-registrar’s Office)

• Register it as a society under the State Co-operative Societies Act or

• Incorporate a company under the Companies Act, 2013

The registration of a company under the Companies Act, 2013 is popularly known as ‘Section 8’ company

 

 

In case you need our services, please write to support@jlnrco.com or call +91 76766 15955

 

Are you not looking for proprietary firm registration? Click below to find other forms of entity registration:

• Partnership Firms Registration

• Proprietary Concern

• One-Person Company or OPC Registration

• Limited Liability Partnerships (LLPs) Registration

• Private Limited Company Registration

• Subsidiary Company Registration

• Setup Branch / Liaison Office

• Trusts and Societies

• Charitable Trusts