Atlanta Charitable Giving Lawyer

Charitable Contributions & Your Estate Plan

Charitable giving can be an essential part of estate planning. It offers a way to support a worthy cause (or causes) while enjoying the tax benefits that come with this. At Meyring Law Firm, we offer charitable planning counsel to clients in the Atlanta area who are interested in nonprofit creation, private charitable foundations, charitable trusts, and other means of giving. Strategic charitable planning can maximize tax benefits and the donations that chosen charities receive.

Find out more about including charitable giving in your estate plan by calling (678) 257-3332. 

Creating Your Own Private Charitable Foundation (Nonprofit Creation)

Creating a private charitable foundation is an ideal way to incorporate charitable giving into your estate plan. This funds charitable activities by way of grants and other gifts under Section 501(c)(3) of the Internal Revenue Code, which applies to nonprofit organizations. Unlike public charities, private charitable foundations are most often created by sole benefactors. 

When Can a Private Charitable Foundation Be Created? 

A private charitable foundation may be created during your lifetime or established after you have passed on. You will have a good measure of freedom in creating the foundation and making decisions on who will run it, which charities to support, and more. The person or persons you choose to run the foundation can receive reasonable salaries. They can be your children, other family members, friends, loved ones, or whoever you deem fit to run the foundation. 

Are Assets Given to Private Charitable Foundations Exempt? 

Any assets you give to a private charitable foundation will be exempt from estate tax, even if you give the foundation your entire estate. No capital gains tax will be levied against any assets sold by the foundation. Upon donating assets to the foundation, you can receive a charitable income tax deduction. The tax-related advantages are significant, particularly when planned with the help of an Atlanta charitable giving attorney who has experience with nonprofit creation. 

Charitable Trusts

A charitable trust, whether a charitable remainder trust or a lead trust, offers another way to contribute to causes you care about. In addition to donating assets to nonprofits and offering significant tax breaks, a charitable trust can provide a much-needed income stream.

• With a charitable remainder trust, the donor transfers assets or property to an irrevocable trust, which means assets cannot be removed once they are transferred in. The trust will then pay income to at least one beneficiary, which may be the donor themselves or one or more named individuals. These payments can continue for up to 20 years or for the life of the beneficiary or beneficiaries. Once the payment term has ended, the remainder of the trust will pass to one or more qualified charitable organizations. This remainder must be at least 10% of the net fair market value of assets initially put in the trust.
• A charitable lead trust operates similarly, but income will first be paid to one or more charitable organizations for a set term. Once that term expires, the remaining assets will pass to one or more named beneficiaries.