[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/charitable-giving-tax-planning-rmds-charitable-remainder-trusts-gifts-heirs-charities-estate-plannin\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/charitable-giving-tax-planning-rmds-charitable-remainder-trusts-gifts-heirs-charities-estate-plannin\/","headline":"Charitable Giving, Tax Planning, RMDs, Charitable Remainder Trusts, Gifts, Heirs, Charities, Estate Planning","name":"Charitable Giving, Tax Planning, RMDs, Charitable Remainder Trusts, Gifts, Heirs, Charities, Estate Planning","description":"\u201cGiving appreciated stock shares, donating your RMDs and using charitable remainder trusts are just a few of the options you may not be aware of to help charities and your heirs at the same time.\u201d America is a country of generous people. We give to organizations that we feel connected to, and we give to […]","datePublished":"2020-03-30","dateModified":"2024-11-05","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso, LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso, LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a4f72b0e.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a4f72b0e.jpg","height":292,"width":400},"url":"https:\/\/www.amorusolaw.com\/blog\/charitable-giving-tax-planning-rmds-charitable-remainder-trusts-gifts-heirs-charities-estate-plannin\/","about":["Charitable Giving","Charitable Remainder Trust","Estate Planning","Gifting","Heir","Required Minimum Distributions \/ RMDs","Tax Planning"],"wordCount":783,"keywords":["Charitable Giving","Charitable Remainder Trusts","Estate Planning","Gifting","Heir","RMDs","Tax Planning"],"articleBody":"\u201cGiving appreciated stock shares, donating your RMDs and using charitable remainder trusts are just a few of the options you may not be aware of to help charities and your heirs at the same time.\u201dAmerica is a country of generous people. We give to organizations that we feel connected to, and we give to charities that we feel are important. We also give to honor our loved ones, to make life better in our communities and to help when disaster strikes.Most people don\u2019t give to charity purely for the tax benefits, but charitable giving has long provided a\u00a0 way of both donating to causes that matter while also lowering income taxes during our lifetimes as well as helping minimize estate taxes when we die, says the article “5 Ways to Incorporate Charitable Giving into Your Estate Plan” from Kiplinger. Therefore, if you are charitably minded, why not achieve the most tax-savings you can? Here are five ways to do this.Appreciated Stock. Gifts of publicly traded stock that has grown or appreciated in value is a good way to support a charity while you are living. If you sell appreciated stock, you will need to pay capital gains tax on the appreciation. However, if you donate appreciated stock to a charity, you\u2019ll receive a charitable income tax deduction equal to the full market value of the stock at the time of the gift. That avoids capital gains taxes and, at the same time, you get the benefit of the appreciated amount, without having to sell it. The charity can, if it wants, sell the stock without paying any capital gains taxes because registered nonprofits are tax exempt.Charitable Rollovers. If you are older than 70 \u00bd, you may donate up to $100,000 per year to charities directly from your IRA. This is known as a Qualified Charitable Distribution or a QCD. The QCD counts towards any Required Minimum Distributions (RMDs) that you need to take from your IRA annually. Under the recently passed SECURE Act, in the future RMDs must be taken by December 31, 2020, after the account owner celebrates their 72nd birthday. Because RMDs are taxable income, they are taxed at ordinary income rates.By donating through a QCD, you can support a charity, fulfill your RMD requirement and exclude the amount that you donate from your taxable income. For those who don\u2019t need their RMDs, that\u2019s a win-win situation.Bequest by Will or Revocable Trust. A more traditional way to support a charity is to leave an amount in your will or revocable trust. The bequest is language in your will or trust that states the amount you want to leave to charity, clearly identifying the charity or charities you want to receive the funds and, if you want, stating the purpose for which you want the charity to use the funds. An important point: make sure that you use the legally accurate name of the charity to avoid any confusion. This is a common error that causes many problems for charities.Consider also giving a donation that can be used for a charity\u2019s \u201cgeneral purpose.\u201d This lets the charity decide where to best allocate your donation, rather than tying the money to a specific program. If you choose to list a specific purpose, meet with the development office or the executive director at the charity to ensure that they are able to fulfill that desire. Otherwise, the charity may need to refuse the bequest.Name a Charity as the Beneficiary of Retirement Accounts. If you decide to name the charity as a beneficiary on the account documents, be sure to use the legally correct name of the charity. The charity will be able to withdraw funds from the retirement account without paying taxes. People who receive funds from retirement accounts pay income tax rates on distributions, but charities do not. You may want to donate retirement account funds to charities, and non-taxable assets to heirs.Charitable Remainder Trusts. This is a way to help the charity and provide for heirs. Your estate planning attorney would create a Charitable Remainder Trust (CRT) and name the CRT as the beneficiary of an IRA. A CRT is a \u201csplit interest trust,\u201d where, for example, a person receives annual payments for the CRT for a set period of time. When the person\u2019s interest in the CRT ends, the remaining funds are distributed to the charity of your choosing. There are very strict rules about how CRTs are structured, including the percentages that the charity must receive. An estate planning attorney will be able to help create this for you.Reference: Kiplinger (March 2, 2020) “5 Ways to Incorporate Charitable Giving into Your Estate Plan“"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Charitable Giving, Tax Planning, RMDs, Charitable Remainder Trusts, Gifts, Heirs, Charities, Estate Planning","item":"https:\/\/www.amorusolaw.com\/blog\/charitable-giving-tax-planning-rmds-charitable-remainder-trusts-gifts-heirs-charities-estate-plannin\/#breadcrumbitem"}]}]