Choosing where your assets will go can be a challenging, yet rewarding process. Maximizing the amount you leave behind will allow you to help more people and do more good. You may choose to leave your family some financial security, take care of the medical expenses of a loved one or donate the money to charity. The benefits of charitable giving for estate planning range from tax deductions to personal health benefits. We hope this guide will help you make decisions that are best for you.
Donating to charity during your lifetime, whether it be a piece of property or monetary gift, is a tax deductible transaction. You can deduct a percentage of the gift from your income taxes, so your tax rate will be lower. This means more of your earned income will stay in your pockets. You may choose to save that money, or spend it on a vacation, education, medical bills or other expenditures.
Reduces the Value Of Your Estate
There are other benefits associated with charitable giving in relation to your estate plan. Each time you donate, you decrease the value of your estate. The government will acknowledge what you gifted, deduct a percentage of that value from your estate, and tax the remaining balance. Anything can be donated, from real estate to physical property or cash.
Helping your community thrive simply feels good. Giving someone the opportunity to go to college, a safe home to grow up in, or helping any other cause you deem fit is an excellent way to see your legacy effect someone’s life. A donation can give you a stronger sense of purpose, help you make amends with past mistakes or provide you pure happiness. Your hard work and generosity will be appreciated by those you helped long after you are gone, which can be a beautiful thing to be remembered by.
Will You Partake In The Benefits Of Charitable Giving For Estate Planning?
Every estate plan is different. Age, income and preference all come in to play when crafting the perfect plan. Knowing whether or not the benefits of charitable giving for estate planning is right for you will take research, time and effort. Let us help you with that process. Our professionals use their experience, intuition and excellent customer service to help ensure your assets are protected. It’s never too early or too late to start estate planning.