Creation of a charitable trust is often the most enduring gift any person can give to others. Charitable Trusts are also a very astute financial decision, which can be tailored to fit your needs exactly. Below is an example, which outlines just one type of trust.

Mr. and Mrs. Williams, through a lifetime of wise fiscal management find themselves financially secure, owning their own home and several income-producing investments. They decide to use company stock originally purchased for $100,000, now worth $1,000,000, to create a trust at the hospital.

To fit their needs and the needs of their children, the trust is set up to provide 6% interest annually to Mr. and Mrs. Williams. They use $30,000 of the annual interest to supplement their income and use the remaining $30,000 to purchase a $1,000,000 insurance policy payable to the trust tax free upon the second death.

There is no capital gains tax due on the stock's appreciation, the Williams receive more annual income, and their children receive the original $1,000,000 from the insurance policy upon their death.