Charitable Giving

For some individuals, planned charitable giving is a component to an advanced estate plan designed to minimize exposure to the federal estate tax. Other individuals, however, do not need to be concerned about the federal estate tax in its present form because their net worth is not sizeable enough to trigger federal estate tax concerns.

Even for individuals without federal estate tax worries, however, charitablele giving, either through lifetime gifts or through a will ("testamentary" gifts), can also offer tax and non-tax advantages.

The first reason for charitable giving is the most important: the satisfaction and personal rewards associated with supporting charities and nonprofit organizations that advance causes that you believe in.

The second reason is the income tax savings that can be realized by lifetime charitable gifts. Subject to certain limitations, income taxes can be offset by a charitable deduction. Outright gifts to a charity will result in this deduction, but other gifting techniques can also be considered. Testamentary gifts offer estate tax planning advantages as well.

Charitable gifts during lifetime or charitable bequests through a will can achieve important objectives in any estate plan. A great variety of charitable giving options are available, one or more of which might be appropriate for any given situation.