What is the Best Way to Leave Some of My Estate to Charity?

What is the Best Way to L…

Many individuals donate funds, property, services, and volunteer time to charities or non-profit organizations during their lifetimes. Not only is this practice personally beneficial, but it often makes good financial sense, as well. In many cases, the desire to donate to a particular cause or charity extends beyond your lifetime. Fortunately, charitable estate planning is a way that you can both satisfy your true desire to continue to financially provide for your favorite charities following your death, and assist you with your tax burden. Charitable income tax deductions, savings on capital gains taxes, and estate tax deductions are all possibilities with the right kind of charitable planning. The best means of making charitable bequests depends entirely on your desires and your individual circumstances. However, there are many options that are available to you in terms of planned giving.

For instance, a charitable remainder trust or charitable gift annuity is a way that you can provide income to a charity over a period of time. These planning mechanisms also can offer you an income tax deduction, a stream of income for the rest of your life, and essentially eliminate capital gains taxes on property placed in the trust or annuity. You can set up your own private foundation, which allows you considerable control over the amounts of and restrictions on gifts to the charities of your choice. You also can create a donor advised fund, which allows for maximum income tax savings based on regular contributions to charities.

The Ann Arbor charitable planning lawyers of Legacy Law Center are experienced in ensuring that you have the comprehensive and up-to-date estate plan in place that incorporates your charitable bequests. We are your trusted advisors who are skilled in looking at all facets of your life, evaluating your needs, and working collaboratively with you and your family to create a sound and effective estate plan. Contact Legacy Law Center today and learn how we can help you make the right decisions for you and your family.

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