Question for the Money Doctors

Question submitted on Jan 14, 2012.

Question

can I make my grandchildern the charity in a charitable reamainder trust?

Answer

In a charitable remainder trust, the income earned on the trust assets is distributed to non-charitable beneficiaries for a set period of time.  Those beneficiaries could be your grandchildren. After the term of the trust expires, the remaining assets would be distributed to a charitable organization, which could not be your grandchildren.