Give with Intention and Structure

Charitable Giving

Everyone has their own reason for gifting assets or a portion of income to charitable organizations. Some find comfort in helping others, while others want to share their good fortune.

The tax code offers incentives for gifting assets or income. Tax deductions may be available for current contributions, and charitable gifts can reduce the size of an estate to help minimize estate taxes.

Charitable Remainder Trust

A remainder trust enables the donor to transfer an asset while retaining the right to the income it generates. The asset becomes the “remainder” owned by the charity. Remainder trusts, if properly structured, can qualify for a current tax deduction.

Planning Techniques

• Unitrust: income is based on a percentage of the current fair market valuation of a trust asset.
• Annuity Trust: the donor is paid a fixed amount annually.
• Pooled Income Fund: donors pool donated assets in a fund operated by a charitable organization and receive a proportionate share of income.
• Charitable Lead Trust: transfers income rights to the charitable organization for a specified period of time, after which the remainder passes to the donor.

Important Note

Charitable planning involves tax issues that should be discussed with a qualified tax or financial professional. For more information on charitable planning, please contact us today.