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Options for Charitable Giving in Your Massachusetts Estate Plan

Estate planning can be an important tool for accomplishing an individual’s charitable goals. Charitable giving via an estate plan provides the inherent rewards of supporting causes you believe in while also allowing the donor to benefit from tax deductions.

General concerns about charitable giving

An attorney can assist with all legal considerations that attach to charitable giving through an estate plan. But there are other matters that deserve your attention as you develop your plan. Some examples include:

  • Ensuring charitable beneficiaries are legitimate and operated in compliance with all applicable laws
  • Understanding how much of what you give will be devoted to serving the mission of the charity versus administrative, overhead, and other costs
  • Balancing charitable aspirations with other estate planning goals, like providing for your children
  • Determining which assets will be of most use to the charity you support

SederLaw can review your assets and charitable interests as we help build your customized estate plan.

Options for charitable giving

There are various tools available for supporting the charitable causes that align with your values while helping you reap the benefits of tax deductions and other estate law advantages. Some examples are:

  • Charitable Lead Trust (CLT) A CLT is an irrevocable trust that provides fixed payments to a charitable cause for a specific period of time. At the end of this term, the remaining assets are then distributed to the donor or designated beneficiaries. The trust can hold various assets such as real property and securities.
  • Charitable Remainder Trust (CRT) Assets are transferred to the CRT, providing an immediate tax deduction. The income is then paid to the donor or their spouse, with the remaining assets distributed to a charity after the donor’s death.
  • Charitable Gift Annuity (CGA) A CGA is a contract between the donor and the charity of their choice. The donor transfers assets to the charity, and in return, the donor can take a partial tax deduction plus a lifetime fixed stream of income from the charity.
  • Donor-Advised Fund (DAF) The donor makes a contribution using cash, real property, or other assets, and can make as many such gifts as he or she wants. As a result, the donor receives an immediate tax deduction and can make recommendations for how the sponsoring organization will distribute the assets.

Accomplish Your Charitable Goals With A Comprehensive Estate Plan

Estate planning provides numerous benefits to individuals, their families, and the communities and causes they support. When you’re ready to prepare your estate, turn to the dedicated attorneys of SederLaw. We can explain how a well-designed plan can be used not only to provide for your loved ones but to advance the mission of your favorite charity. Connect with our Estates & Trusts team today.