As discussed in the previous article, there are several different ways that you can make charitable giving a part of your estate planning strategy, so that your favorite organizations can continue the good work they do. Perhaps you have been an active supporter or donor during your lifetime, or have volunteered your time, and want to ensure that the work you’ve done continues after you are gone. Or perhaps there is an organization you believe in, and feel that part of what you’ve earned would be well-spent, after you have passed, in helping them reach their goals.

In the last article, we discussed charitable bequests and donor-advised funds; one option very simple and straightforward, the other a bit more complex. There are two other common ways that people allocate a portion of their estate to a charity:

Charitable Remainder Trusts are a bit more complicated—this is something you may wish to speak to your financial advisor about. In a Charitable Remainder Trust (or CRT), you donate cash or other investable assets to an irrevocable trust, in a charity’s name. Over a set period of years, the charity then makes payments to you; at the end of that period of years, the charity owns the trust (and the underlying assets) outright. While there may be fees such as trustee management fees, investment management fees, or others, the tax benefits may outweigh such fees—talk to your financial advisor if you think this is a good option for your estate.

Like Charitable Remainder Trusts, Charitable Lead Trusts allow you to donate cash or other assets to a charitable organization. That organization then pays you a set fee over a set period of years. However, CLT’s are sort of the opposite of CRT’s; at the end of the agreed upon term, the assets, cash, or property revert back to your ownership. One of the benefits is that throughout the term of the agreement, the donated items held in trust are often not a part of your taxable estate; you may, however, be responsible for trust or management fees.

Both of these options are more complex then simple bequests, and merit a conversation with your advisor or tax attorney. There are benefits including control of assets involved in each option, so discuss what makes the most sense for your own personal situation.

Regardless of the method of making a charitable contribution, almost any organization will be most grateful for a gift of any size. Do your homework on the receiving organization, and then relax knowing that you have made an impact that outlasts your life.