• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • Communities We Serve
      • Cook County
        • Barrington
        • Glenview
        • Northbrook
        • Skokie
      • Lake County
        • Gurnee
        • Lincolnshire
        • Riverwoods
        • Vernon Hills
        • Waukegan
  • Services
    • Asset Protection & Business Planning
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Resources
    • Client Resources
      • Free Seminars
      • Estate and Gift Tax Figures
      • Free Estate Planning Worksheet
      • Is Your Estate Plan Outdated?
      • Probate Resources
        • Glenview Probate
        • Lake Forest Probate
        • Lincolnshire Probate
        • Northbrook Probate
        • Vernon Hills Probate
        • Waukegan Probate
    • Frequently Asked Questions
      • Asset Protection
      • Business Succession Planning
      • Estate Planning
      • Families Without an Estate Plan
      • Financial Planning Assistance
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Probate
      • Trust Administration & Probate
      • Trusts
    • Legacy Wealth Planning
    • Published Books
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
  • BLOG
  • Contact Us
  • Review Us

Hedeker Law

Illinois Estate Planning Attorneys

Connect with us today(847) 913-5415

Attend a Free Seminar
Home / Estate Planning Articles / Getting Value Out of Giving with Charitable Trust

Getting Value Out of Giving with Charitable Trust

September 30, 2011

Compliments of Our Law Firm,
By: The American Academy of Estate Planning Attorneys

Americans are givers. In 2010, we gave more than $290 billion to our favorite causes, with the vast majority of charitable giving, $212 billion, donated by individuals or household donors.

Federal tax laws regarding cash gifts to individuals support this generosity and can have a big impact on your estate taxes. A taxpayer can give as much as $13,000 per year to separate individuals, gift and estate tax-free. If the taxpayer is married, the couple can make gifts of up to $26,000 to any individual.

One of the simplest forms of charitable gift giving is to give outright to 501(c)(3) organizations. As you probably know, even small cash or non-cash contributions can qualify for income tax deductions when they’re made to a qualifying 501(c)(3) organization. To get a tax deduction, simply get substantiating documentation from the charity and include it with your federal tax filing.

Giving small donations to charitable causes can earn you a tax deduction, but did you know that federal gift tax laws allow you to give substantial sums to Trusts, with the benefit of significant tax savings? Charitable Trusts can be flexible tools for making future gifts to charity and can also provide an income stream for you, your spouse, or loved one.

The Charitable Remainder Trust, or CRT, is one type of charitable Trust with positive tax consequences. With a CRT, the donor can arrange for charitable gifts by transferring assets into the Trust, with the Trust providing distributions to the donor during his or her lifetime. At the end of the CRT’s term, the Trust property is transferred to a named beneficiary in the Trust.

Yet another charitable Trust is the Charitable Lead Trust, or CLT. Through this type of Trust, a charitable concern gets distributions for a certain term, and when the term of the Trust ends, the remainder is transferred to a non-charitable beneficiary such as the donor’s children.

Some gift-giving strategies, like an outright donation to a 501(c)(3), are fairly straightforward. However, some are more complex, as is the case with a CRT or a CLT. This is why it’s important to consult with an attorney who has been trained in estate planning. He or she can help you create a gift-giving and tax-saving strategy that addresses your particular circumstance.

Primary Sidebar

FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • twitter
  • link
  • youtube

Testimonials

Client Review
September 8, 2020
    

Dean's knowledge is very comprehensive and current. He not only sees and understands the particular question but he puts it in the context my particular matter and to the overall business and tax environment. Dean has been my attorney for many (over 20) years. I am also an attorney but I would never make a tax, business or financial decision without his extraordinary advice and counsel.

default image
Raymond

Where We Are

LINCOLNSHIRE
1 Overlook Point, Suite 610,
Lincolnshire, IL 60069
Phone: (847) 913-5415

See Larger Map Get Directions

Office Hours

Monday8:00 AM - 5:00 PM
Tuesday8:00 AM - 5:00 PM
Wednesday8:00 AM - 5:00 PM
Thursday8:00 AM - 5:00 PM
Friday8:00 AM - 5:00 PM

Map

hedeker_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Privacy Policy
  • Disclaimer
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • twitter
  • link
  • youtube
footer-logo

Hedeker Law Ltd.
All Right Reseved.

Attorney Advertisement

© 2023 American Academy of Estate Planning Attorneys, Inc.