Estate planning experts generally advise that charitable donations and gifts be given during one’s life in order to realize the tax benefits of their contributions. However, many investors do not want to bequeath their fortunes until after death to realize the interest of the assets during their lifetime.
One way to accomplish this is through establishing a charitable foundation, although this option can be laborious and come with its own set of inconveniences. Luckily, there are two other options that allow people to receive beneficial tax treatment during their life while earmarking certain proceeds for charitable contributions.
Charitable Remainder Trusts and Donor-Advised Funds are effective philanthropic vehicles, and Chicago based donors often rely on the advice of a Lincolnshire charitable giving attorney to determine the best option for their situation.
Charitable Remainder Trusts (CRTs)
A Lincolnshire charitable giving attorney can assist in setting up a CRT that enables the holder to make donations into the trust, and receive their tax deduction at that time, while still receiving the benefits of holding the assets during their lifetime. At the time of their death, the Charitable Remainder Trust will then be passed on to the charitable organization.
Donor-Advised Funds (DAFs)
DAFs allow benefactors to guide how their donations are utilized, making these funds similar to a charitable foundation. While similar in the way that the funds will be used according to the donor’s wishes, a DAF removes the need for the onerous oversight and administrative duties that come with creating a charitable foundation.
Consulting with a Lincolnshire charitable giving attorney can help future benefactors learn more about their options for charitable giving while alive or as part of their estate planning.
Chicagoland attorneys Orlowsky and Wilson, Ltd. specialize in Estate Planning and all manner of Business Law. The firm has offices located throughout the metropolitan area and serves clients in both Cook and Lake counties as well as the entire Illinois area.
