Charitable Planning in Massachusetts

Serving families throughout Lynnfield, Wakefield, Reading, Peabody, Danvers, Beverly, Greater Boston, North Shore, and Southern New Hampshire area

For those clients looking to leave a legacy, we at Family Estate Planning Law Group encourage and assist families in giving to charitable causes. Along with the many personal rewards inherent in making a charitable gift, most gifts also provide a current charitable income tax deduction. Some charitable giving strategies also save capital gains taxes, increase income, help diversify stock portfolios, and provide you, or whomever you designate, with an income for life. Several types of split interest gifts (techniques that will benefit both charity and your or your family) may provide an estate tax deduction as well.

Contact us for more information or to explore which of these strategies would be best for your family.

Making the Most of Your Charitable Giving in Massachusetts

Paying taxes to the government allows them to choose how to spend or allocate your tax dollars, whether that be government sponsored programs or spending for society. You have no control over where the government will use your tax dollars. Some people call this involuntary philanthropy.

We offer our clients planning designs that allow them to reallocate their “social capital” to programs and causes they believe in and wish to support. We help turn involuntary philanthropy into voluntary philanthropy and this gives our clients the benefit of knowing whom the money will benefit and how it will be used. The same cannot be said for money paid to the U.S. Treasury. We help clients make charitable gifts consistent with their values and beliefs in the most tax-efficient manner.

There are many different ways to make charitable gifts:

  • A charitable remainder trust (CRT) or a charitable gift annuity will give you an immediate income tax deduction, a lifetime stream of income, and a waiver of capital gains taxes owed on contributed property at the time of the sale of the assets contributed. This technique works with highly appreciated stock.
  • A charitable lead trust (CLT) creates an income stream to charity for a term of years with the remainder of the trust going to your children without any estate or gift tax consequences if designed properly.
  • A private foundation offers you the considerable freedom to control amounts given by placing restrictions on how your gifts are used by charities so you and your family can ensure your charitable gifts are used in the manner you intend.
  • A donor advised fund may be used as an alternative to a private foundation when the family seeks less control and more assistance in the administration of the charitable gifts and reporting requirements.

This is a very general overview of a very complex subject matter. If there are charities, causes, or organizations you would like to support, while also maximizing your tax-saving strategies and reallocating your social capital, please contact us to explore your options.

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The best way to get started is to get in touch with us by phone, email, or filling out a form. We look forward to talking with you.

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Family Estate Planning Law Group serves the Boston area, Essex County, Middlesex County, Suffolk County, and parts of Norfolk County, as well as clients throughout Massachusetts and New Hampshire, including Andover, Arlington, Beverly, Danvers, Lexington, Lynn, Marblehead, Medford, Melrose, Newburyport, Newton, Peabody, Reading, Revere, Saugus, Stoneham, and Waltham in matters of Estate Planning, Wills & Trusts, Elder Law, Trust Administration, Planning for Mom and Dad, Estate Tax Planning, Special Needs Planning, Medicaid Crisis Planning, Asset Protection, Business Succession Planning, Charitable Planning, and Probate & Estate Administration.

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