Charitable Planning

Charitable wealth planning is an excellent way to achieve several important goals at once: to benefit causes that matter to you and your community; to impart your values about giving and philanthropy to your family, and to realize significant savings on income tax, capital gains tax, and estate tax.

For many people, it’s possible to support a favorite charitable cause without negatively affecting the inheritance they leave behind for their loved ones. That’s because the tax benefits of charitable giving can offset any gifts that would otherwise reduce their estate. In other words, thoughtful charitable financial planning can allow you to keep more of your wealth out of the government’s pockets, and direct it where it will do more good: your loved ones and favorite causes.

To maximize the benefit of your charitable giving, and minimize income and estate taxes, contact Sanz Law to schedule a consultation.

Options for Charitable Giving

Depending on your circumstances, goals, and needs, there are a number of charitable giving options available to you, including:

• Charitable gifts and bequests: donating to a charity during your lifetime or making a gift to a charity through a will or trust after your death
• Charitable lead trusts (CLT): A charity or charities you choose receive income from the trust for a specified period, after which the assets in the trust are distributed to your beneficiaries, such as children or grandchildren
• Charitable remainder trusts (CRT): You, your family members, or other chosen beneficiaries receive income from the trust for a specified period. At the end of the term, trust assets are distributed to one or more charities you have chosen
• Private foundations: These tax-exempt organizations are often funded by an individual or family and make grants to other charities
• Donor-advised funds (DAF): You contribute to a fund managed by a public charity and can direct contributions from the fund to your preferred charities
• Conservation easements: You can grant a conservation easement to keep land you own from being developed and preserve it in a natural state for others to enjoy
• Charitable gift annuities (CGA): You make a financial gift to a charity, in exchange for which you receive a fixed annuity payment for life
• Qualified charitable distributions (QCD): Making a charitable donation directly from your IRA counts toward required minimum distributions (RMD). Because the distribution doesn’t pass through your hands on its way to the charity, it is not included in your taxable income.

Using one or more of these charitable wealth planning strategies is common for individuals with a high net worth. However, even people with more modest estates can benefit a favorite cause and garner tax savings through charitable financial planning. Many of the strategies above provide an immediate tax deduction for donors.

Work with a Skilled Charitable Financial Planning Attorney

Your time in the world is marked by more than just what you accumulate; it’s also marked by what you give. Charitable giving is a way to have a positive impact on others—not only the charities you help, but the family members who learn the importance of giving from you.

Attorney Jimmy Sanz is committed to helping you to help others, and to minimize your tax burden in the process. Jimmy devotes his practice to both tax law and estate law, and he understands how these complex practice areas work together in charitable giving.