Charitable Giving
Charitable giving accomplishes a number of beneficial things in estate planning. First, it enables you to give something back to the world and help with various worthy causes. Secondly, it gives you a current income tax deduction and at the same time removes assets from your estate that may be subject to estate taxes at your death. Are you currently making donations to your favorite charitable or non-profit organization? Do you wonder if you could be doing something more effective with these contributions?
Example:
John (age 70) and Mary (age 65) Client plan to donate $20,000 per year for the next ten years to their favorite charity. At the end of that time, their total donations to the charity will have totaled $200,000. As an alternative, they could contribute the annual donations to a last-to-die insurance policy on themselves with the charity named as the beneficiary. They would have received the exact same tax deductions for their annual contributions, but instead left the charity a gift of $1,200,000.
Contact us for a complementary, no obligation analysis of your personal situation and a proposal on how best to implement this program to maximize the value of your annuities for your heirs should it be appropriate for your estate planning needs.
