A Guide for Woburn Residents
Why Include Charitable Giving in Your Estate Planning?
Does your cause matter to you? Giving to charity not only helps a notable nonprofit, but it can also strengthen your legacy and reduce estate taxes. Giving to charity can benefit multiple parties, regardless of the nonprofit organization you choose to support. Charitable giving will reduce your taxable estate so that you pay less estate tax and can leave more money to your loved ones. You may be able to deduct income taxes for charitable gifts you make during your lifetime. It also builds community and gives you a sense fulfillment. Being informed about charitable giving helps you make informed estate planning decisions that meet your goals and the needs of your family members.
Every gift or bequest you make in your estate plan should be carefully considered. We recommend that you retain the services of an experienced estate planning lawyer to help you with your estate plan. Contact our Woburn, MA, law office to schedule your initial consultation today. We can answer any questions you may have about estate planning and charitable donations. Contact our Woburn, MA law office today to schedule an initial consultation to learn more about charitable giving and estate planning. One of the easiest ways to include charitable giving in your estate planning measures is to name a charitable organization as your beneficiary. You can name charities to be beneficiaries of your trust, IRA, or will. In your will you can specify that a certain percentage of your estate assets should be donated to a charity of your choice. By including gifts to charity in a will or trust, your donation will be made to the charity when you die. You can eliminate any concerns you may have that you will donate too much and leave yourself without funds during your lifetime by using these methods. This amount could be given to your beneficiaries or a charity. You can give up to $18,000 in gifts to as many people you like without paying any tax. For example, a person could give $18,000 to each of his 10 grandchildren in 2024 with no gift tax implications.
The benefit of giving away money is that you can help reduce the size of your estate to minimize estate taxes. The recipients of the gifts will not have to pay tax on the amount received. You would typically need to take money out of your retirement account and treat it as income (which would be taxed) before giving the cash to charity. If you are 70 1/2 years old or older, you may be able to donate up to $100,000 directly from your IRA to the charity, without having to pay any income tax. This is a qualified distribution, and it is only available to IRAs. When considering this option, you should consider some rules and factors. Charitable trusts are a great way to support charities and benefit from tax and estate planning benefits. The trusts can be set up in a variety of ways to meet your needs and goals. This type of trust offers tax deductions, reduced inheritance taxes, and a way to leave a legacy. We’re here to help. To learn more about how charitable giving and estate planning benefit each other, please contact our Woburn law office to schedule a consultation today. What Are the Different Types Of Charitable Trusts
A charitable rest trust is an irrevocable, which means it cannot be altered or dissolved after it has been created. Charitable rest trusts let you or trust beneficiaries use the income generated by the assets in the trust. The payments can continue for up to 20 or even the lifetime of one or more beneficiaries. The remaining assets are donated to one or more charities at the end. When donating to a charitable rest trust, you must choose IRS-approved organizations. This type of irrevocable trust is created by transferring assets from your estate into the trust, and then donating income generated from these assets to a charitable organization of your choice. If there is any money or asset left at the end of your donation period, it will be distributed to other beneficiaries. A charitable lead trust can benefit your estate plan by allowing you to receive a gift tax credit based on how much income is given to the charity. One downside to consider for charitable lead trusts is that they require annual trust administration management.
Do You Need the Legal Help of an Estate Planning Lawyer?
There are numerous legal issues to consider and no shortage of options for those interested in estate planning and charitable giving. It can be overwhelming to determine what options are best for you and analyze them. To learn more about how we may assist, please contact our law firm today to discuss your questions and concerns during a consultation.
Schedule a Consultation with an Experienced Estate Planning Attorney in Woburn, MA, Today
The Heritage Law Center proudly represents clients across eastern Massachusetts interested in estate planning and charitable giving. We would be happy to help you with your legacy planning, as you consider including charitable giving in your estate plan. You can reach our office at 617-765-9307.
