Charitablegiving

offering potential benefits
to our clients

Charitable Giving

There are many benefits to charitable giving. These include tax deductions, inheritance tax deductions and federal estate tax deductions. The tools we use vary in their size and scope. Essentially there are three categories:

  1. A Charitable Remainder Trust
  2. A Charitable Lead Trust
  3. A Private Family Foundation.

A Charitable Remainder Trust allows you to gift highly appreciated assets to the trust while retaining an income interest for your life or the life of you and your spouse. When you or the survivor of you passes away, the remainder interest in the trust passes to the charity. In addition to the death tax deductions, you also receive an income tax deduction for the present value of the gifted remainder interest.

A Charitable Lead Trust is the opposite. With a Charitable Lead Trust, the income interest is given to the charity on a monthly, quarterly or annual basis. When you die, the remainder interest goes to your heirs. The value and amount of the deductions is based upon the terms of the trust.

A Private Family Foundation is a charitable corporation or trust that you set up today. This foundation is a charitable, non-profit corporation and you receive an income tax deduction for the gifts you make to the foundation. There are limitations to how much you may deduct and the value of the deduction. However, the benefits are numerous.