One of the most honorable things an individual can do is give back to his or her community, or even the world. If you are someone who would like to donate to schools, religious institutions, or any other community-based organization and is unable to afford to do so in your lifetime, there is a very good chance you are now considering charitable planning. Your estate plan can provide certain charities and organizations with the assistance they need that you were unable to provide in your lifetime. Please read on and reach out to our compassionate, knowledgeable estate planning firm to learn more about how we can help you help others.
How can I fulfill my charitable planning wishes?
There are several ways individuals can make their charitable planning wishes come true. Individuals can fulfill their charitable planning desires through bequests in wills or trusts, lifetime gifts, beneficiary designations on death, and more. In fact, certain individuals can even utilize their life insurance policies to fund charitable gifts. In some cases, you may use bequests on death to donate to a charitable or a non-profit organization. Individuals will have the option to gift either their life insurance policy itself or a portion of the proceeds upon their death via a beneficiary designation. It is worth noting that qualified charities do not pay income tax on gifts from retirement accounts. Therefore, oftentimes gifts from retirement accounts are more desirable to these charities.
What are the different types of charitable trusts?
There are two primary types of trusts that individuals can establish in the state of California. They are known as charitable lead trusts and charitable remainder trusts. Charitable lead trusts ensure that portions of your trust assets are paid out to charities over a certain length of time. Once the designated time is up, the remaining assets will be transferred to your beneficiaries, either with significant tax savings, or, in some cases, completely tax-free! On the other hand, charitable remainder trusts transfer income back to the trust’s creator or a designated beneficiary only after the trust is established. Once the individual who created the trust passes away, the remaining assets will be transferred to the charity in question.
Contact our experienced California firm
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. Do not delay. Estate planning is a more urgent matter than you may think. You never know what the future holds. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.
