Charitable Giving Planning

There are many ways to give to charity. Most people simply donate cash to charities or leave money to charity through their will. Doing so, however, does not maximize the tax benefits of charitable giving.

For example, if you own real estate or stock that has appreciated in value, you can establish a Charitable Remainder Trust, gift the property to the trust and the trustee can sell the property without having to pay capital gain taxes. The full sales proceeds, undiluted by tax, are then invested inside the trust for your benefit. You and your spouse receive income from the trust for the rest of your lives plus, you receive an income tax deduction for your gift to the trust that can be used to offset income you receive from the trust. Additionally, some states offer tax credits for gifts to qualified endowments.

There are many types of charitable-giving vehicles, each with its own pros and cons. Some of these include:

  • Charitable Remainder Trusts
  • Charitable Lead Trusts
  • Charitable Gift Annuity
  • Donor Advised Funds
  • Life Estate Reserved
  • Private Foundation

As your advisor, I’ll guide you on how to use these tools and strategies to maximize the impact of your charitable giving, achieve your estate planning goals and leave a lasting legacy.

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