FAQ Friday: Charitable Trusts for Income Tax Saving
On Friday, February 18th, at 11am EST, Mr. Berger discusses how to use charitable trusts for income tax saving.
This is a real passion for our firm. Helping families plan while also helping charities. Every gift that flows toward a charity is a reminder of the donor.
This can be a complex part of estate planning due to all the provisions involved. It shouldn’t be something you do without the help of a professional.
Take a highly appreciated property such as stock and put it into your revocable living trust that typically pays out over the life of the donor.
Right now it is computed on interest rates which is pretty low at this time. The trustee can sell that asset and move it into a diversified portfolio once the lifetime has been completed.
You pay taxes on the income that comes out of that trust. There is a charitable deduction if that is going to the charity.
We are looking for good management and investing that will result in a steady stream of income as well as the ability to donate to a charity. This can be a deduction against your estate.
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