How to Include Charitable Giving in Your Estate Plan

Your San Jose Estate Planning Attorney wants you to understand how charitable giving can be an integral part of your estate plan, allowing you to accomplish your charitable goals while providing tax benefits to yourself and your beneficiaries. Here are some considerations and strategies for incorporating charitable giving into your estate plan:

1. Charitable Remainder Trust (CRT): A CRT is a trust that allows you to provide income to yourself or other beneficiaries for a specified period, with the remaining assets eventually going to a charitable organization. You can receive income during your lifetime while supporting your chosen charity and potentially obtaining a charitable income tax deduction.
2. Charitable Lead Trust (CLT): A CLT is a trust that provides income to a charitable organization for a designated period, with the remaining assets ultimately passing to your chosen beneficiaries (such as your children or grandchildren). A CLT can help reduce estate taxes, transfer wealth to the next generation, and support charitable causes simultaneously.
3. Donor-Advised Fund (DAF): A DAF is a philanthropic vehicle that allows you to make a charitable contribution to a fund and recommend grants to specific charities over time. By establishing a DAF, you can receive an immediate tax deduction for the contribution, while retaining the flexibility to support various charitable organizations over the years.
4. Charitable Gifts during Lifetime: Consider making charitable gifts during your lifetime to support organizations and causes that are important to you. Gifting assets to qualified charitable organizations can provide both income tax deductions and the satisfaction of making a positive impact during your lifetime.
5. Bequests in Your Will or Trust: Include specific bequests or a percentage of your estate to charitable organizations in your will or trust. This allows you to support charitable causes while potentially reducing the taxable value of your estate, thereby minimizing estate taxes.
6. Retirement Account Beneficiary Designations: Consider naming charitable organizations as beneficiaries of your retirement accounts, such as IRAs or 401(k)s. This can provide tax advantages, as qualified charitable organizations are exempt from income taxes, and these assets can be subject to significant tax implications if passed on to non-charitable beneficiaries.
7. Consult with Professionals: Estate planning involving charitable giving can be intricate, and it’s advisable to work with an experienced San Jose estate planning attorney and tax advisor. 

 To discuss how you can include your charitable intent and giving in your estate plan, contact our San Jose Estate Planning Attorneys at (800) 244-8814 to schedule a consultation.

If you have any further questions about estate planning and strategies to shield your wealth, or if you’d like to have your current asset protection plan reviewed to make sure it still meets your needs, please contact us at one of our offices located throughout the state of California 800-244-8814 to set up a consultation.