Planned Giving: Ensuring Your Legacy Lives On

Planned giving is an impactful way to ensure your legacy supports the cause(s) you care about while also providing significant benefits to your estate. At the Law Offices of Mark F. Moss, we understand the importance of integrating charitable giving into your comprehensive estate plan, maximizing the impact of your generosity, and minimizing potential tax liabilities*.

What is Charitable Giving in Estate Planning?

Charitable giving in estate planning involves donating cash or property to non-profit organizations. This can include:

• Stocks
• Real estate
• Vehicles
• Works of art
• Household appliances
• Jewelry

While you don’t receive anything tangible in return for charitable gifts, these contributions can offer considerable tax exemptions. The receiving charity must be a qualified organization under IRS guidelines, including religious, scientific, educational, or charitable institutions, among others.

Qualified Organizations for Charitable Giving

According to the IRS, qualifying organizations include:

• Religious organizations (churches, mosques, synagogues, temples)
• Non-profit schools and hospitals
• War veterans’ organizations
• Domestic fraternal societies, associations, or orders created for charitable purposes
• Non-profits like the Red Cross, Goodwill, Salvation Army, or United Way
• State, local, or federal government agencies if the funds are for public use (e.g., public park renovation)

It’s crucial to verify that the organizations you wish to support meet these criteria to ensure your gifts qualify for tax benefits.

Charitable Giving Strategies in Estate Planning

Public vs. Private Charities and Tax Treatment

• Public Charities: Donations can attract deductions up to 60% of your adjusted gross income (AGI).
• Private Charities: Deductions are typically capped at 30% of AGI for cash gifts and 20% for appreciated assets.

Retirement Account Gifting Strategies

• Donate appreciated assets such as stocks to avoid capital gains tax and claim deductions for the market value.

Long-Term Charitable Giving Strategies

• Donor-Advised Fund (DAF): Deposit assets for charitable contributions, managed by a third-party. Take immediate tax deductions even if funds are distributed later.
• Charitable Remainder Trust (CRT): Donate assets to a trust, receive income during your lifetime, with remaining assets going to charities after death.
• Pooled Income Fund: Similar to a mutual fund but holds donations. Immediate tax deduction and annual income, with remaining funds supporting charities after death.
• Charitable Lead Trust (CLT): Donate income from assets to charities for a set period, with remaining assets returning to you or your beneficiaries, reducing estate taxes.

By incorporating charitable giving into your life plan, you can ensure your legacy extends beyond your lifetime, making a positive impact on the world and the causes you hold dear. What you may perceive as a “small” contribution, has the possibility to leave a large impact on the recipient(s). Contact the Law Offices of Mark F. Moss at (904) 329-7242 or visit markmosslaw.com to schedule your complimentary consultation today.

**Disclaimer: Reading this blog post does not create an attorney-client relationship and is not legal or tax advice. This is for informational purposes only. It is best to speak with an attorney or tax professional about your specific situation, questions, assets, concerns, and needs.