Shortly after enactment of the federal income tax laws, Congress passed additional laws allowing a reduction in those taxes based on the amount given to qualified charitable institutions and organizations. This amounts to “voluntary” taxation through philanthropy.
The full implementation of these laws in your plan can have a wonderful effect on many aspects of your family’s finances, philosophy and values.
Build Character in Family Members
The feeling that one receives when giving to others is a special gift of its own. When you help your family members realize this ‘gift of giving’ you can instill in them the work ethic, responsibility and character to be able to succeed in all walks of life.
Reduce Income Taxes & Enhance Your Income
The federal government has chosen to reward you in several ways when you become socially conscious.
Here is an example:
You gift ‘property’ to a qualified charity. That property is sold and converted into an income producing asset for you, with no capital gains taxes owed on the sale transaction.
The new assets provide you with an immediate tax deduction and can increase income for life.
That income enhances or assures your lifestyle. Any reduction in the size of your estate due to significant gifting can be offset by one of a number of wealth transfer tools funded by the benefits received above.
Charitable planning can be accomplished through a variety of tools:
- Charitable Remainder Uni-Trusts
- Charitable Remainder Annuity Trusts
- Charitable Lead Trusts
- Donor Advised Funds
- Supporting Organizations
- Private Foundations
- Public Foundations
- 501(c)3 Organizations
Optimum charitable planning is achieved when the planning is an integral part of a comprehensive
Estate Plan. At Gregorek and Associates we use our trademarked Wealth Plan System™ to achieve every possible benefit from your charitable planning.