Four Ways to Make Charitable Giving Part of Your Estate Plan

Whether it is honoring a loved one or paying tribute to an important cause, people create trusts for various reasons. Despite its often noble goals, charitable giving also creates some substantial tax issues. While many people who decide to pass on assets to charities do not view tax implications as a high concern, it is still a good idea to reduce taxes so you can pass on the greatest amount of assets possible. The following reviews five powerful ways that you can incorporate charitable giving into your estate plan. Utilize a Charitable Remainder Trust Charitable remainder trusts are a great way to pass on your assets. Under the terms of this trust, an appointed party will receive annual payments from the trust for a period of time. When the beneficiary’s interest in the trust ends, the remaining amount is passed on to a designated charity. These trusts meet specific requirements. Among others, the charity must receive a percentage from the trust when it is initially funded. To make sure the trust meets requirements, the assistance of a skilled estate planning attorney is also often essential. Pass on Assets Through Your Revocable Trust or Will The direct and simple way to [...]