Charitable planning is a way to support a favorite cause or a particular charity that means something to you as part of your estate plan. Charitable planning comes under the same laws that address trusts and wills, which are complex. But by working with an experienced attorney, you can support meaningful causes while creating some tax benefits for your estate. In other words, charitable planning is a way to give and to receive.
Here are three important benefits to including planned giving in your estate plan:
- Give More
Giving a taxable asset like an IRA or 401k puts more money in the pocket of a non-profit organization than giving that same asset to an individual because the gift to the charitable organization will not be subject to taxes. Giving a taxable asset to an individual is subject to income tax and potentially estate tax as well. With planned giving, the money you’ve worked hard for can go farther and support a good cause!
- Reduced Taxes
Planned giving can lead to many tax benefits, including reducing income taxes, estate taxes, and capital gains taxes. Further, a charitable trust can be designed to provide an immediate income tax deduction while allowing you to continue to use the asset. This is one example; there are many strategies to reduce taxes with planned giving.
- Peace of Mind
If you like the idea of leaving something to a nonprofit organization but you are concerned about your family’s needs, there are basically two ways to ensure you and your family’s needs are prioritized. First, you can defer giving an asset to a charity until specific needs are taken care of. Second, you can give your asset to the charity while retaining the right to use the income it generates until you or your family no longer need them.
- Give More
If you’ve found meaning and purpose as a volunteer or benefitted from a worthy organization, you may want to consider including charitable giving in your estate plan. With planned giving, you can maximize your money, take measures to reduce taxes, and know that you and your loved ones will be taken care of.
Meet with a Corning Attorney.
When you design your estate plan, you may want to consider charitable planning as well. Roth Elder Law, PLLC has the experience needed to navigate this complex area of law. Call us today to schedule an initial meeting at 607-962-6162 or complete this intake form and we’ll be in touch.