What is Charitable Planning?
Charitable planning is a type of estate planning that specifically donates your money to charities and there are many different types such as charitable trusts, donor advised funds, and charitable gifts. Within charitable trusts there are two kinds: remainder and lead. Charitable Remainder Trusts are irrevocable trusts that give money to the donors for life and then provide money to the assigned charity when the grantor dies. A Charitable Lead Trust, on the other hand, donates a portion of money to the given charity and, after the allocated amount of time, gives the remainder of the money to the trustees. Donor Advised Funds are gifts to a charity over time and gifts are donations to a charity at one time. All of these options are used to increase a tax deduction and avoid capital gains taxes or estate taxes.
