Skilled New York Lawyers Assisting Clients with Charitable Contributions
Few things offer as much fulfillment as giving to a worthy cause. Including donations to charitable organizations in your succession planning can require careful preparation in order to make the most of your contributions.
Maurice Kassimir & Associates, P.C., provide assistance to clients who wish to leave part or all of their wealth to charity:
Donating Outright – A client can make outright donations of assets to a charity during their life or after their death. They can also take advantage of income and estate tax savings.
Designation as a Beneficiary – Naming a charity the beneficiary on a life insurance policy allows clients to include the policy’s value in their estate. More favorable tax advantages may be possible by also naming the charity as a policy owner.
Charitable Lead Trusts – Also called charitable income trusts, this irrevocable trust allows a designated charity to receive interest income, while the remainder returns to the client or their designated beneficiary.
Charitable Remainder Trusts – This trust allows individuals to benefit from the trust by receiving an annuity during their lifetimes, and to transfer trust assets to a charity after the death of the surviving spouse.
Private Foundations – Clients can set up their own charitable foundation that qualifies as a charitable organization under Section 501(c)(3) of the Internal Revenue Code. They receive a full income tax deduction for the fair value of assets contributed to the foundation. Timing gifts during high income tax years offers even greater saving advantages.
Donor Advisor Funds – Contributions can be made to this type of foundation which will administer the donations for a fee. Although clients lose some control over management of the funds, they save the headaches associated with running a foundation.
Contributing to a charity can help a worthy cause and serve non-monetary family interests as well. For example:
An elderly client’s spouse died of lung cancer and they wished to donate a portion of their wealth to cancer research. They also wanted to actively engage their children in charitable giving. Maurice Kassimir & Associates, P.C. discovered the client had about $2 million in an IRA account that would have been subject to taxation at approximately 80 percent upon death. We helped the client place the IRA money into a private foundation exempt from income or estate taxes, created for the benefit of the American Cancer Society. The client was able to optimize the impact of their donation and create a vehicle for charitable giving by their children in the fight against cancer.
Whether it involves a straight donation or contributions to a charitable remainder trust, the skilled attorneys at Maurice Kassimir & Associates, P.C., take pride in helping clients make thoughtful, informed wealth transfer decisions.
Contact Maurice Kassimir & Associates, P.C., for advice from a charitable planning lawyer tailored to your estate planning goals.