Charitable giving presents an opportunity to support a  wide range of organizations that include educational, medical,  environmental and religious causes.  Gifts to qualified organizations  can provide significant tax and estate planning benefits to the  donor(s).    Charitable giving begins with defining your objectives and  asking some basic questions.

  • What causes do you want to support?
  •  Do you want to make giving decisions individually or with your family?
  • How important is it for you to be personally involved in the causes you support?
  • Does creating a family legacy motivate your charitable giving?

After building or selling a successful business or thriving professional career people shift their attention to philanthropy.  

Charitable  giving comes in many forms from outright cash contributions to more  complex strategies to maximize estate and tax benefits.  Below are  several examples that include:

  • Charitable gift  annuities are vehicles in which donor transfers cash or an asset to a  charity which, in turn, pays the donor a fixed annuity for life.
  • Charitable  remainder trust (CRT) provides a payment stream to the donor, or  designated beneficiary, for a period of years or for the beneficiary’s  lifetime.  After the beneficiary’s death, the remainder is distributed  to one or more charities selected by the donor.
  • Charitable  lead trusts are vehicles in which the donor places property in a trust  that provides a payment stream to a charity for a period of years. Upon  completion of the specified period, the remaining trust property is  transferred to the donor’s ultimate non-charity beneficiary. Some  charitable lead trusts provide current income charitable
    deduction and some do not.  
  • Life  Insurance can be structured to deliver at a discount a substantial  and possible timeless gift to a Donor’s selected charity. Through  financial leverage, relatively small annual gifts (premiums), creates a  significant benefit at the Donor’s death. The death benefit usually  eclipses the annual gifts (premiums) thus providing an extremely large  gift to the Donor’s charity.  This can be accomplished without impacting  or diluting the control of the Donor’s investments or family business  interests.  

LC Advisor can provide guidance in setting up these types of trusts or insurance programs for different charities.