Donating to charity is something everyone should do, however, it is, of course, not required. That is what makes donating such a noble thing to do. If you are someone who would like to donate to a charity or nonprofit organization of your choice, but do not have the financial means to do so, you may be looking into charitable planning. Fortunately, with the help of a skilled estate planning attorney, charitable planning can be a simple, yet rewarding process. Please read on and reach out to our experienced firm to learn more about how we can help you create your plan. Here are some of the questions you may have:
How do I donate to charity in my estate plan?
Individuals have several options when it comes to donating to charities through their estate plan. To start, people very often fulfill their charitable planning wishes through lifetime gifts, bequests in wills or trusts, beneficiary designations of death, and more. In certain cases, individuals are even able to gift either their life insurance policy, or a portion of the policy’s proceeds upon their death via a beneficiary designation. You may also make a bequest on death to donate to charitable or non-profit organizations. It is worth noting that oftentimes, qualified charities do not pay income tax on gifts from retirement accounts, so these gifts are, therefore, generally more desireable to those charities. With a knowledgeable attorney on your side, you can successfully incorporate charitable planning into your estate plan.
What is a charitable trust?
There are two different types of charitable trusts available to individuals in Maryland; charitable lead trusts and charitable remainder trusts. In a charitable lead trust, portions of your assets are paid out to charities over the course of time, and once the predetermined time period is up, the remaining assets are transferred over to your beneficiaries, either with a significant tax deduction, or even tax-free. Charitable remainder trusts, on the other hand, transfer income back to the trust’s creator or a beneficiary after the trust is established. Once the creator of the trust passes away, his or her remaining assets are transferred over to the charity named in the plan.
Contact our experienced Maryland firm
The attorneys at JD Katz have years of experience compassionately guiding clients in Maryland through the estate planning and administration process. Our firm also has experience with matters of elder law, business law, tax law, and litigation. For a legal team that will put your needs first, contact JD Katz today.