Gift & Estate Planning with Purpose
Leaving a Lasting Legacy and Encouraging a Better Tomorrow...
What is Charitable Gift and Estate Planning?
Charitable planning is a way for many to efficiently and effectively pass their estate, and values, on to their heirs while also supporting a charity into the future. The means by which this is accomplished often results in tax savings and enhances the amounts being passed to family and charity.
Is Charitable Planning Right for Me?
While all circumstances are different, there are some similarities with many who seek this unique approach to comprehensive financial planning. The following are reasons many who desire to create a charitable portion within their estate plans do so:
- They regularly donate time or resources to charities, currently.
- They seek to leave an ongoing legacy of generosity after their death.
- They want to avoid paying high taxes on their income and estate.
- They want to pass along their values of generosity and altruism to descendants.
- They desire to give back to a nonprofit organization they feel passionate about because of a personal or family connection.
What about My Heirs?
Heirs do not have to be denied an inheritance. There are many ways to leave money for charity and at the same time protecting the future financial needs of your family. In fact, much of charitable planning is making certain that MORE of your assets transfer to your family and charity rather than to the government.
Isn't This Just for the Wealthy?
Research shows that the wealthy are more likely to have a charitable piece within their financial plans, however, charitable planning is for anyone with the desire to give. From Trusts and Family Foundations to Donor Advised funds and simply tithing, there is an option for anyone at any income level. In Fact, the use of Donor Advised Funds (which are cheap to establish and maintain) are the fastest growing charitable vehicle right now. Recent research says that nearly $6 Billion in charitable donations have been made from over 122,500 separate accounts nationwide annually.
What Tax Savings are Available?
Just like your unique circumstance requires a unique financial plan, so too your tax savings will be different from someone else's. Generally, however, charitable planning can help with the following tax strategies:
- Immediate income tax deduction.
- Avoid paying capital gains on highly appreciated assets.
- Avoid estate tax on inheritances.
- Avoid income tax on required distributions from retirement accounts.
- Offset taxes created from a Roth IRA conversion.
- Grow certain assets tax-free or tax-limited.
- Transference of tax liability.
- And much more.