The benefits of setting up a charitable trust
Tower Trust explains the reasons why someone may set up a Charitable Trust.
Monday, May 28th 2001, 3:34PM
There are many distinctive features to a Charitable Trust and some of these are:
- If approved by the Inland Revenue Department, they are able to earn income, which will not be taxed within the Trust.
- Gifts can be made of any amount to Charitable Trusts without incurring gift duty.
- Charitable Trusts can continue on in perpetuity if desired, as compared to other types of Trusts that can only continue for a maximum of 80 years.
- They can be set up during one's lifetime and then added too later by a Will.
- Money can be given or lent to a Charitable Trust.
- The chosen name of the Trust can be preserved in perpetuity and the Trust structured so it will continue to grow through investment or by compounding part of the income.
- By lending capital to the Trust it is possible to preserve ones options. The loan can always be repaid later if the capital is needed for other purposes.
Tower Trust currently looks after a considerable number of Charitable Trusts with the main one being:
The Winton and Margaret Bear Charitable Trust: The Winton and Margaret Bear Charitable Trust was set up in August 1977. Mr and Mrs Bear's philosophy during their lifetime in particular was to assist the younger generation in the Wellington region in their training for life. Since their death their legacy and the philosophy's of the Trust have been continued through the grant making process managed by Tower Trust.
Over the number of years the Trust has been in operation a considerable number of grants have been made. These grants have been to various educational, religious and charitable organisations.
Mr and Mrs Bear had always voiced the fact that any assistance that is provided should be given to those persons in need, and not for those who have access to funds and can afford to pay the total cost themselves. Depending on the nature of the request it has been Mr and Mrs Bear's wish that the people benefiting should make some financial input (if possible) and not rely 100% on funds from the Trust.
Tower Trust senior client account manager David Copson says that "the Trust created by Winton and Margaret Bear is a wonderful gift to the youth of Wellington and it is our duty as trustee to ensure their legacy and visions are carried on through future generations."
Tower Trust has the impartiality, skill, and experience in setting up and administering Charitable Trusts.
Tower Trust has acted as a professional Trustee for over 119 years and this is an important reason why many people choose Tower Trust to set up and administer their Charitable Trust.
For more information on these Trusts and of setting up your own Charitable Trust, please do not hesitate to contact us on 0800 869 378 or email: firstname.lastname@example.org
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