Giving to charity is an excellent way to reward the causes and institutions that mean the most to you. When done properly, charitable giving can also ensure the greatest possible portion of your gift goes to the charity rather than the RS. In addition, it can provide you with benefits, such as deductions on capital gains, estate and income taxes, as well as create a steady income stream for you, your loved ones and future generations. A skilled estate planning attorney will help you in the most efficient manner possible. If you would like to make a charitable bequest, please read on, then contact an experienced Rockland County wills, trusts and estates attorney to learn what you should know about charitable planning in NY State.

What charitable planning options are available in NY?

You and an estate planning attorney can accomplish your charitable planning in the following ways:

  • Charitable remainder trust: This is when a portion of the individual’s income is distributed back to the creator of a trust, or the designated beneficiary of the trust. Once the individual passes away, their remaining assets will be given to charity.
  • Charitable lead trust: This is when parts of the trust assets are distributed to charities over time. After a designated period of time passes, the assets that remain in the trust are distributed to the deceased’s beneficiaries either tax-free or with significant tax savings.
  • Charitable gift annuity: A contract between donor and charity that stipulates the donor:
    • Makes a sizable gift to charity using cash, securities or other assets
    • Becomes eligible to take a partial tax deduction for the donation, and
    • Receives a fixed stream of income from the charity for the rest of his or her life
  • Qualified charitable distribution: An otherwise taxable distribution from an IRA (not an ongoing SEP or Simple IRA) owned by a person 70.5 years or older that is paid directly from the IRA to a qualified charity.
  • Donor-advised fund: Maximizes income tax savings on weekly or monthly donations to your church and other charities.
  • Private foundation: The donor specifies and controls how the recipients use the donor’s gift.

You should reach out to R. Spencer Lauterbach, Esq. today if you have any questions about this or any other estate planning matter. A skilled legal professional will help you discuss your options, determine the most favorable option, write a clear, legally-binding document and file it with the proper entities. Together, we can help ensure your final wishes are carried out, so please call us today.

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The Lauterbach Law Firm is proud to serve clients throughout Rockland County who are faced with legal matters related to estate planning, real estate, foreclosure defense, landlord-tenant law, business law, and criminal defense. If you require the services of an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.