Charitable donations are a way to spread the holiday spirit and practice generosity. We encourage clients to make donations to causes they truly believe in.
The values of philanthropy can be a part of your estate plan through charitable donations. Making donations through your estate plan can also reduce tax liability for yourself, your estate, and your loved ones. Including giving in your estate plan can inspire your loved ones to follow your legacy, and you can set an example for generations after to be charitable, volunteer, and display empathy in everyday life.
Here are a few ways you can participate in charitable giving:
1) Cash: The most basic donation and is one that most people know about. That’s as simple as writing a check to a charity or another tax-qualified organization of your choosing.
2) Appreciated securities: Include shares of individual stocks, mutual funds, ETFs, or closed-end funds, which can be made to qualified organizations.
3) Non-securitized assets: With real estate, stock in a privately held business, art, or collectibles, the value of the asset at the time of the gift is deductible, like publicly traded securities.
4) Donor-advised funds: These are philanthropic funds created as public charities that invest money on behalf of the donor.
Charitable giving not only helps others but also can help you with year-end tax deductions. If you give away your money efficiently, your estate might not be reduced by paying an estate tax when you die. Give us a call to learn more about charitable donations and how you can maximize the benefits for your estate.
