If you are a reasonably wealthy California resident who desires to make a substantial contribution to your favorite charity, you may wish to consider creating a charitable trust. As Fidelity Investments explains, there are two different types of charitable trusts: charitable remainder trusts and charitable lead trusts. Both types split the assets you contribute between the charity and a noncharitable beneficiary of your choice.
A charitable trust can give you great flexibility and control over the assets you contribute to it. At the same time, it can help you fulfill your goals for philanthropy, estate planning and tax management. Which type of charitable trust is right for you depends on your estate planning and wealth preservation goals, as well as on what kind(s) of assets you want to donate.