Let’s face it, we all want to make a difference. And as uncomfortable as we may be with the thought, our time to make a difference is finite. Many of us are creating a legacy for future generations, either by giving to our favorite charity or by operating a not for profit organization. Planned giving can be another effective way of creating, or expanding, our legacies.
Planned giving can take a number of forms, and what is best depends on your personal financial situation and plan for the future. A simple gift in your will or as a contingent remainder gift may fit with your plans. Charitable lead and charitable remainder trusts are another way to provide for your family’s immediate needs while building a legacy for their future.
More sophisticated vehicles are also available that offer tax advantages. For example, you can gift appreciated assets to a not for profit organization and avoid capital gains taxes while obtaining the benefit of the full value as a tax deduction. Your favorite not for profit organization can be named as beneficiary on tax affected investments like IRA and 401K accounts so that the funds pass without taxation; while substituting other tax free assets, like life insurance, for your heirs. You can also make your favorite not for profit organization the beneficiary of a bank account, brokerage account or life insurance policy or donate a policy to the not for profit organization rather than cancelling it, when those funds are no longer required to secure the financial security of your family.
Pluymert, MacDonald, Hargrove & Lee can assist you with your charitable gifting plans, whether you want to make a gift or establish a planned giving program for your not for profit organization. If you would like more information on planned giving, contact Patricia Tauchert, Hoffman Estates Estate Planning Attorney, for additional resources