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Charitable Planning

Posted by Chris Peterson | Jun 16, 2015 | 0 Comments

Charitable Planning

Charitable PlanningMany people give to charities in their lifetime, and are interested in planning to leave money to certain charities they value upon their death as well. Charitable planning allows you not only to leave a bequest to a charity, but may also save considerably on capital gains tax, increase in income, and provide a legacy for a future generation. Your College Station estate attorneys will help you determine which method of charitable planning fits best with your needs and interests.

What Is Charitable Planning?

Charitable planning is the process by which individuals leave money, stocks, real estate, etc. to charities for which they feel passionate. There are many organizations doing wonderful work around the world, and most of them depend upon donations. Therefore, when you leave money in a trust to a charity you are making a lasting difference for a cause that matters to you.

Most people, if left with the choice, would prefer to leave money to an organization they believe in rather than have a portion of their estate eaten away by capital gains and other taxes. Whether or not the government would be a good steward of your tax money is at issue, but if you have thoroughly researched the charity to which you want to leave a legacy you likely know how the money is handled.

What Are Some Ways to Make Charitable Gifts?

Your attorney will discuss with you the numerous options available to you in your charitable plan. The following is a sampling of what you may expect:

  • Charitable Remainder Trust: This trust will establish an annuity for the charity while also immediately providing you with a tax deduction. Moreover, you will receive a stream of money for life, and you will not need to pay capital gains on contributed money.
  • Life Income Gift: Income payments go to the family during your lifetime, and money that is set aside to be used at a future date by the named charity provides a tax deduction. Fixed, variable and deferred payments are available with this structure.
  • Charitable Lead Trust: In this trust you charity enjoys immediate payments on a fixed basis for a specific time, after which the remainder of the trust will revert to named beneficiaries. Estate and gift taxes are avoided in this way.
  • Retained Life Estate: If you donate a property to your charity, you can still retain the right to live there until you die. This provides a current income tax deduction.

For Questions and Assistance

Charitable planning can help you and your heirs, as well as provide an income to a charity to which you want to provide assistance. As should be evident from the discussion above, the matter is rather complex, and it is in your best interests to discuss the charitable planning with College Station estate attorneys. Call Peterson Law Group today at 979-703-7014 or 936-337-4681.

About the Author

Chris Peterson

Chris Peterson is the owner of Peterson Law Group. He practices primarily in the areas of wills, trusts and estate planning; probate and trust administration; elder law; and business law. Chris is also the owner of Brazos 1031 Exchange Company.


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