Estate Planning: Strategic Charitable Giving

As you are estate planning, it is important to consider the tax implications and strategies related to charitable contributions. When you donate to charity during your lifetime, you're able to reduce your taxable income by making itemized deductions for these contributions.

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If you plan to continue philanthropy after death, it is important to consider the tax treatment of assets donated to charity. Just because you leave assets with the intention of donating to charity, the trust or estate may not automatically qualify for a charitable deduction.

The IRS has requirements for trusts and estates that must be met for the entities to qualify for charitable deductions. Be sure to keep these requirements in mind as you are drafting your trust and estate planning documents.

Donating assets to charity can have more favorable tax implications because trusts/estates do not have an adjusted gross income limit on deductions like individuals do. Utilizing a donor-advised fund or a charitable trust can provide immediate tax deductions while also reducing the gross estate value.

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STRATEGIES FOR TAX-EFFECTIVE CHARITABLE GIVING

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Keep the following in mind to make the most of your charitable giving:

Stick to the Rules

Ensuring your gifts get the tax breaks they deserve.

Unlock More Benefits

Find extra perks in giving through trusts or estates.

Use It or Lose It

Remember, excess contributions can’t be carried forward.

Strategize Your Giving

Choose smart ways like donor funds to maximize impact.

Plan with Purpose

Tailor your giving, whether new or in your legacy, for the biggest impact.

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ESTATE PLANNING INVENTORY WORKBOOK

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Charitable giving, whether personally or through trusts and estates, can have significant tax implications. To learn more, please contact Richard Kollauf, a Principal at SVA Certified Public Accountants.