Are you a California resident with a dependent who has special needs? If so, you likely know a little about trusts. These allow you to manage assets and finances for a loved one even after your passing. It is a great tool for caretakers who have loved ones who cannot manage their own money. But have you heard about pooled charitable trusts? This option may be something to consider.
A pooled charitable trust involves pooling money together with others. In doing so, you can start a charitable trust at a considerably low starting cost. Pooled charitable trusts have a starting cost of around $5,000-$10,000. While this may seem like a lot to some, it is much lower than the $100,000 that is typical for charitable trusts.
With a pooled charitable trust, the charity or investment company sets everything up. They also deal with accepting donations. They invest pooled donations in the stock market, as is the case with a mutual fund. Then, once you get enough returns on this investment, you get paid.
Though there is a minimum donation amount, there is no maximum. This means that you can keep adding funds to the trust even after hitting the minimum. If you don’t have a lot of cash to give, this is a great alternative as you can keep adding small amounts over the years.
Dealing with trusts can be difficult, but research can help you understand. If you want to keep reading, you can visit our web page here on special needs trusts. You can look into how special needs trusts work.