Charitable planning is a strategy you may adopt to continue donating to your favorite nonprofits or charitable organizations even when you are, unfortunately, no longer around. Incorporating charitable planning into your estate plan may take you extra time. However, the benefits that follow may just make it all worth it. Follow along to find out the benefits of charitable planning and how a proficient Broward County estate tax planning lawyer at The Probate Lawyers can help you establish the appropriate documents.
In what ways might charitable planning be beneficial?
Your charitable planning may work to financially support your favorite nonprofit’s or charitable organization’s mission, all while sustaining your reputation as a dedicated philanthropist. But its benefits extend far beyond this; primarily, it may offer you great tax breaks. Examples read as follows:
- You may gift appreciated assets that easily allow you to avoid future capital gains taxes.
- You may make gifts that easily allow you to maximize your state income tax deductions (i.e., normally, charitable contributions may make up to $300 in deductions as of 2023).
- You may make gifts that easily allow you to exceed the charitable deduction annual gross income limit (i.e., normally, charitable contributions may make up to 60 percent of your annual gross income as of 2023).
It is also worth mentioning that there is great flexibility in charitable planning. Meaning, you may decide to start gifting during your lifetime, so that the nonprofit or charitable organization may sooner receive the support that it requires for its financial health. Or, you may disclose your intended future gifting upon your passing, so that the nonprofit or charitable organization may have a predictable budget and plan with certainty.
What’s more, you may retain great control over your assets in charitable planning. This means that you may craft a plan that has you retain the income you need to support your lifestyle for the rest of your lifetime. Plus, you may set aside enough assets to still offer significant inheritances for your designated beneficiaries at the time of your passing.
What charitable planning tool might I incorporate into my estate plan?
There are several strategies that you may adopt to incorporate charitable planning into your estate plan. Examples read as follows:
- A charitable remainder trust.
- A charitable lead trust.
- A charitable gift annuity.
- A charitable life estate.
- A private foundation.
- A family foundation.
- A donor-advised fund.
Of note, you may not be limited to just one charitable planning tool. But you may use a combination of tools that works in the best interest of yourself, your favorite nonprofit or charitable organization, your designated beneficiaries, and your types of assets. For these reasons alone, you must consult with a talented Broward County estate lawyer immediately. Our team at The Probate Lawyers is happy to advise you.
