JK Lasser's New Rules for Estate, Retirement, and Tax Planning, 6th Edition
by Stewart H. Welch III, J. Winston Busby
CHAPTER 12Strategic Planning with Charities
In addition to fulfilling their philanthropic desires, most people making gifts to charities also have a keen interest in the income and estate tax benefits that come from such gifts. The income tax benefits are derived from gifts to charity made during life. Estate tax benefits can be generated when testamentary gifts (gifts at death) are made. Thanks to the TCJA, estates valued under $11.18 million (approximately $22.4 million for married couples) are not subject to death taxes, so people who have a strong charitable intent but who have estates less than the taxable amount may prefer to make their charitable gifts during life to obtain a current and more predictable tax benefit. Regardless of tax benefits, more often the desire to make a significant gift to charity overshadows the donor's interest in the tax benefits.
If you want to leave part of your estate to charity, there are many strategies available that you can use to provide funds to your favorite charities while also providing estate and income tax benefits for you and your family. These strategies range from the simple strategy of outright gifts to the very complex strategies that utilize specialized trusts. Tax‐exempt organizations generally include traditional charities, such as the Red Cross or United Way, as well as qualified educational institutions and religious organizations. Before making donations to any organizations, you should confirm that the group or foundation ...