Create Your Plan
As part of your long-range financial planning, you may also want to consider gifts that will be received only after you and your loved ones no longer need the assests.
Through 2008, you can leave up to $2 million to loved ones free of federal estate taxes. In many cases, this can make it possible to include charitable gifts as part of your estate plan, while your heirs receive the same or more than they would have under prior law.
Giving through your will, for example, can be a convenient way to leave a lasting legacy.
After providing for your loved ones, you may decide to make charitable gifts of a specific amount, a percentage of your estate, or all or part of what remains after family and/or friends have been remembered.
Such a gift can often be arranged with the simple addition of a codicil (amendment) to your existing will.
Giving through living trusts is another idea you may wish to consider.
A growing number of people are using trusts created during their lifetime (often referred to as "living trusts") to provide for the managment and furture distribution of their assests while reducing the cost of probate.
Charitable gifts can be a practical addition to these trusts.
A simple amendment to a living trust can be all that is required to make a gift in this way.
Giving life insurance proceeds as part of your future plans can allow you to make a meaningful future gift.
You may name a charitable beneficiary to receive all or a portion of policy proceeds at death. Income and estate tax benefits may result from such gifts.
Giving retirement plan remainders.
Giving retirement plan remainders is gaining in popularity becuase amounts remaining in Individual Retirement Accounts (IRA's) and other tax-favored retirement plans at death may be subject to both estate and income taxes before ultimately being recieved by heirs.
For this reason, charitable gifts of retirement plan balances may be wise from both income and estate tax planning perspectives.
In consultation with your advisors, you may find that one or more of these options may help you meet long-term charitable goals while first providing for the needs of your loved ones.
More information is available without obligation by sending a request to carol.mccormack@mesaunitedway.org. If you would like a complete brochure including a summary of charitable tax benefits, please call our office at (480)-969-8601 and ask for our 7 Ways to Give Booklet.