Ways to Give

During the holiday season many of us give gifts to family, friends and our favorite charities.  As you give your gifts to charities this year you may want to consider other ways you can give.  Here is a run down of several options:

Charitable Remainder Trusts (CRT)
A CRT provides a current year income tax deduction while allowing the grantor to retain an income stream for a period of years or life.  The amount remaining in the trust after the term or after the grantor’s life passes to a named charity or charities.  Several advantages of utilizing a CRT include:  a tax-free investing environment for assets inside the CRT, the ability to change the charitable beneficiaries during the term of the CRT and being able to name a donor advised fund as the remainder beneficiary.

Charitable Lead Trust (CLT)
A CLT provides a current year income tax deduction for the interest to be paid to the charity or charities over the term of the trust.  The remainder of funds in the trust can pass to family members or trusts for the benefit of family members free of gift and estate tax.  A donor may name a donor advised fund or even a private foundation as the charitable recipient of the CLT if structures properly.

Private Foundations (PF)
A PF allows a donor to make a donation, take an income tax deduction and retain some continuing control (possibly for generations) over the investment and distribution of the funds inside of the PF.  The PF funds will ultimately all pass to charities or be utilized to support the charitable mission of the PF.  A donor can select the charitable beneficiaries over time and just the charitable mission of the foundation as well.  The PF provides an excellent opportunity to involve children and grandchildren in the charitable giving process.

Donor Advised Funds (DAFs)
A DAF allows a donor to make a donation, receive a charitable deduction and maintain some control over the investment and distribution of the funds.  A DAF has higher adjusted gross income limitations than a PF.

If you are interested in establishing a charitable giving plan for your family please contact us to schedule a free consultation to discuss which option is right for you.

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