When planning for the future, it’s important to plan what will happen to your estate after you pass. If you are a charitable person and wish to continue to help others, there is a way you can do that. There are charitable trusts that can be set up prior to your passing that can be donated. You can fulfill your wish of making a donation through various options.
You can include in a will what foundation you wish to donate to or you can include it in your trust. There are other trusts that can be set up specifically for charitable giving. Charitable lead trusts and charitable remainder trusts are two options that can help you reach your goal of donating. Over a period of time, charitable lead trusts are given to your chosen charities in portions. After a specific period of time, what is left in the trust goes to your beneficiary. This may remain tax-free or with significant tax savings. Charitable remainder trusts are set up differently. After these trusts are set up, a stream of income goes back to the creator of the trust or a designated beneficiary. Upon death of the individual, the assets that remain go to charity.
Often times, people overlook that their life insurance policies and retirement plans can be used for charitable giving. These are money sources that can be used in charitable trust plans. Retirement plans can have tax attributes that may make it a better choice for charitable giving rather than something already in your estate plan. Charities that qualify do not pay tax on gifts that come from retirement funds. If you are 70 years old or older, there may be tax provisions that you should review when deciding your gift to charity.
Giving to charity as a final gift is beautiful. If you plan on doing so, it may be best to consult a professional on what method of gifting may be the best. You can figure out which of your assets would be the best suited as a gift.
Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Office of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.