Charitable Trust
A charitable trust is a trust made for the benefit of specific charitable purposes. The purpose of the trust must fall into one of the specific purpose categories or is it not valid. Charitable trusts are favored by the law. They do not have to have definite beneficiaries because the party who enforces the trust is the attorney general. Also, charitable trusts are not subject to the rule against perpetuities.
Definition from Nolo’s Plain-English Law Dictionary
A trust designed to make a substantial gift to a charity and also achieve income and estate tax savings for the person who creates the trust (the grantor). These trusts are usually set up during the grantor's lifetime and are irrevocable. (See also: charitable lead trust, charitable remainder trust)
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:12 pm
