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Charitable Planning

Estate and Tax Benefits of Gift Planning and Charitable Donations

Charitable gift planning can be a simple process. For example, you can write a check, hand over cash, transfer stock, or sign a quit-claim deed to real estate directly to the charity of your choosing. However, there are also more involved strategies for giving and receiving that may carry unique benefits for you and the charity. If you want to make a larger gift or receive better tax benefits, talk to the Austin charitable planning lawyers at Barnes Lipscomb & Stewart, PLLC.

How Can I Use Charitable Planning in Austin?

If you intend to make a charitable donation of some size before or after you pass away, you should speak with an estate planning attorney at Barnes Lipscomb & Stewart PLLC. Our team is experienced with investments, property, tax, and other charitable transfers. We can ensure that your gift transfer is set up properly, both for philanthropy and your own taxes.

With proper charitable planning, you and your family can receive significant tax benefits and even lifetime income. Barnes Lipscomb & Stewart PLLC will explain charitable giving options that allow you to integrate your values into your giving and financial goals alike.

These options may include charitable trusts, charitable gift annuities, and other strategies to make the most of your gifting. One popular strategy is making planned gifts as testamentary bequests to charities in wills or revocable living trusts, potentially funded by life insurance.

What Are the Benefits of Charitable Giving in Texas?

Planned gifts provide opportunities to make charitable gifts that may allow you to: (i) provide inheritances for heirs, while decreasing their tax liability; (ii) lower your taxes on your ordinary income through charitable deductions, and/or avoid capital gains taxes on your appreciated assets; and (iii) create a charitable legacy for future generations. There are many additional benefits to charitable planning beyond this brief overview, so contact your attorney to explore your options.

Charitable Planning Strategies

There are many charitable planning strategies Texas citizens use to help others and reduce their tax burden. These include life income gifts, bequests, various forms of trusts, and more.

Life Income Gifts

This approach provides a future source of income for the charity while providing a tax deduction and current income payments to you and your family. This gift can be flexible with fixed, variable, or deferred payments.

Bequests and Retirement Plan Charitable Beneficiaries

You can name your charity as a beneficiary of your will or revocable living trust — or name the charity as a beneficiary of a retirement plan, such as an IRA, 401(k), 403(b), or other retirement fund. This can be a win-win, especially regarding retirement plan assets. There are no income or estate taxes on any retirement plan assets left directly to a charity.

Charitable Lead Trusts

This trust can leverage the eventual transfer of appreciating assets to family members in light of current and future estate and gift tax consequences. Essentially, this approach provides immediate support to your charity through fixed payments for a specified period. At the end of the term, the trust will revert to your loved ones by transferring all its remaining assets to them with reduced or no estate and gift tax.

Retained Life Estate

You can generate a current income tax deduction by giving real estate (e.g., a home or farm) to your charity, but still retain the right to use the property during your lifetime.

Speak with Our Charitable Planning Lawyers in Austin

Again, these are just a few (of many available) planned giving strategies you can use to make your gift. Charitable giving is a great way to support your favorite non-profit interests. Even better, planned giving can help you make sizable gifts that can benefit both charity and your family.

Request a consultation with Barnes Lipscomb & Stewart PLLC to explore these and additional strategies with you, depending on your unique circumstances.

An Austin, Texas Based Firm Serving Clients & Their Families throughout Texas

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