Coleman Talley’s estate planning attorneys advise clients regarding charitable giving, requiring a unique combination of technical knowledge of estate and tax law, along with an understanding of charitable objectives. We assist our clients in designing and implementing a strategy to meet their goals. Along with the personal benefits intrinsic to charitable donations, most gifts provide a charitable income tax deduction, while others result in capital gain tax savings or increased income.
Since there are several different methods to make charitable gifts, including charitable remainder trusts, charitable gift annuities, charitable lead trusts, private foundations, and donor advised trusts, our attorneys advise clients on the income, gift, and estate tax consequences of each method. Our attorneys also have experience in the establishment of private and publicly supported charitable organizations.
Types of Charitable Planning:
Charitable Lead Trusts
A charitable lead trust allows an individual to transfer ownership of their assets to a trust during their lifetime or after their death and designate planned giving to a charity or foundation for a certain number of years. When that time is expired, the remaining interest transfers to the beneficiaries, usually free of estate and gift taxes.
Charitable Remainder Trusts
Charitable remainder trusts are a frequent method of planned giving. They allow an individual to convert a highly appreciated asset into lifetime income. While assisting a charitable organization, it simultaneously reduces income and estate taxes and does not generate capital gains tax when the asset is sold.
Private Charitable Foundations
A private charitable foundation is a non-profit organizing having a principal fund and managed by trustees for social, educational, charitable, or religious activities serving the common good. Foundations offer a substantial amount of control in determining how funds are utilized and may legally make grants to other non-profit organizations. Contributions to private charities are tax deductible for federal gift and estate taxes.