Charity Planning with Insurance

The concept of philanthropic estate planning is neither new or revolutionary.

Charitable remainder trusts (CRT) have been widely used since the regulations were formulated in the 1969 tax reform act. Charitable giving not only offers significant estate and tax planning opportunities, it also benefits family members and the community. The charitable remainder trust offers the unique advantage of allowing the donor to continue enjoying property even though it has been given away to a qualified charity.

Definition: A charitable contribution is a gratuitous transfer of property to an organization designated by law to be a qualified charitable organization. A gift to such an organization results in a current income tax deduction, may reduce federal estate taxes, and can be made free of gift taxes. The charity pays no tax upon receipt of either a lifetime gift or bequest. Generally, the qualifying charity pays no income tax on the sale of the asset or the income earned on donated property.

Trust types: There are various charitable trusts available, depending on the wishes and desired objectives. The trust you establish will greatly depend on type of property to be transferred, desired tax treatment, beneficiary designation, level of desired control and current income requirements to the donor.

Get started: We will meet with you to establish a platform to meet your financial objectives. We will then consult with your legal and tax advisors to determine the best course of action. Finally, we will recommend the type of charitable trust that would best fit your tax and income needs.

Have questions about charity planning?
Just ask.