Charitable Giving
Posted: 7/24/2010 by Genevieve Frederick
Reduce Estate Tax with Charitable Giving
In 2011, America’s wealthiest families will be looking for ways to reduce estate taxes. To make a legal declaration in a will about our wishes for a monetary gift from our property, to a qualified 501 9 (c)(3) charity, we can reduce or eliminate estate taxes. This not only allows a tax reduction, it further permits us to benefit society and pass on our values.
Gifts can be made in several ways. The simplest method is through a gift or bequest, which excludes the gift from the estate and lowers the amount that is taxable. Statistics show that fewer than 20 percent of individuals with taxable estates include charities in the estate plan. This is certainly worth consideration.
Estate planning is important, not only to the wealthy but to average folks like you and me. If you have assets greater than $1 million per individual, it will be taxable at death unless Congress passes changes. Without estate planning, our state of residence may determine how to dispose of our property, and without our personal input. This creates a burden for our beneficiaries as they try to obtain the properties and also likely creates more taxes on the estate. A plan helps minimize expenses by keeping the costs of transferring property as low as possible and protecting it from creditors. Without an estate plan, those with children will have the courts appoint guardians for them without your input.
Contact an estate-planning attorney to help you plan the transfer of your assets. Please remember the nonprofits that could benefit from a fraction of those assets. Such a bequest sets an example to heirs, which confirms our personal morals, and compassion to the less fortunate in America.
FUZE