Estate Planning
- Estate Planning Considerations For Charitable Giving
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Donation Options Minimum Amount Required Can You Revoke the Gift? Do You get Income or Use During Lifetime? Subject to Probate? Charitable Tax Credit Available When Can Charity Use Gift? Outright Gift Now None No No No Now Immediately Bequest in Your Will None Yes, by changing your Will prior to your death. Yes Yes After death in your final tax return or return for the preceding year. After Death Insurance Policy (Charity is owner and beneficiary of policy) Check with Charity No. If you don't pay premiums charity can pay them, reduce death benefits or cash in the policy. No No Now and as you pay your future premiums. After Death Insurance Policy (Charity is the beneficiary of policy) Check with Charity Yes, as owner of the policy you can change the beneficiary of the policy. Yes, if you cash in the policy, but then there's nothing left for the Charity. No No amount qualifies for a charitable tax credit. After Death Strip Bonds $1,000 No No No When gift is made. On maturity or sale of bond Annuity Depends on issuer No Periodic payout is virtually tax-free if you're 70 or older. No Now, but granted only if you take reduced annuity payments. After Death Endowment Fund Depends on purpose No No Only if gift made under your will Now, or on death for available gift under will. Income immediately, or after death if gift made under your will Private Charitable Foundation Several hundred thousand dollars. Creation & operation require professional services. You can lend funds to the Foundation to be repaid if needed. Loan can be forgiven at death or if money not needed. No, although you can control the investments and disbursements, subject to restrictions. Only if gift made under your will. For year of donation to Foundation. No credit for loan. You control the grants subject to minimum yearly quotas set by tax rules.