23 Nov Giving is Always in Season
With the holiday season now in full swing, many of us look for ways to show our gratitude by giving of our time and resources to those in need. But did you know that you can continue your legacy of giving right now and after you die with a Charitable Trust?
Your favorite charity can be the beneficiary of a revocable living trust in addition to other beneficiaries like children and grandchildren. Some of our clients find that this is a great way to decrease capital gains taxes while also donating to an organization that means a lot to them. It’s a win-win!
There are two types of charitable trusts: The Charitable Lead Trust and the Charitable Remainder Trust. In short, a charitable lead trust allows you to make payments to a charity during your lifetime. After you die (or in a shorter time period of your choosing), the remaining assets are given to the beneficiaries of your trust. A charitable remainder trust is essentially the opposite– your assets are given to the charity while you receive payments during your lifetime. Upon your death, the remaining assets go directly to the charity.
Another way to donate and at the same time reduce taxable income is to donate from your IRA. This relatively new rule allows givers to save on taxes and therefore give more if they wish. Here’s a great resource with some more information.
When choosing a charity to include in your trust or IRA disbursement, it’s important to do a little research to make sure your hard-earned money will be helping the way you expect it to. Guidestar.org is a terrific resource where you can find out more about the non-profits you support and whether or not they are using their assets for helping people instead of just operations.
If you are interested in finding out more about charitable trusts or IRA’s, click here to sign up for a free consultation with us. Meanwhile, here’s a list of some of our favorite charities in case you need a place to start…
- Habitat For Humanity
- Sharing Down Syndrome
- Sunshine Acres Children’s Home
- Care For Life
Happy Thanksgiving from The Phelps LaClair Team!