Quick information about charitable giving

Leaving money to a good cause is a thoughtful way to create a legacy. It also can be fiscally smart. Charitable gifts have the potential to reduce your taxable estate. Here are some points to consider when preparing your charitable giving.


Who can receive a charitable gift?

Charitable gifts can be made to qualified charitable, religious, educational and scientific organizations, as well as to any political subdivision of the U.S. government. An estate attorney can verify that your intended charities qualify under current tax laws.


What is and isn’t deductible

Gifts made to qualified charitable organizations are deducted from your overall (gross) estate, reducing your total estate taxes. Generally, a charitable gift deduction is unlimited, except in the case of partial interests in property, or property jointly owned with someone else.


Charitable remainder trusts

One way to share jointly owned property and still enjoy the charitable gift tax deduction is through a charitable remainder trust. This is designed to disburse income to an individual over a defined period of time. Once that time has passed, the remainder of the trust goes to its specified charity as a gift. The actuarial value of the trust’s remaining amount is eligible for a federal income tax charitable deduction at the time it’s established, and for a federal estate tax charitable deduction at the time of your death.


Due to the legal complexities involved, it is prudent to set up a charitable gift under the guidance of an estate attorney.


Life insurance is often a part of the charitable remainder trust strategy. The companies of OneAmerica® can help you find a financial professional near you to help you with your life insurance and meet your estate preservation. Contact us today!



NOTES: Neither the companies of OneAmerica nor their representatives provide tax, legal, fiduciary, or investment advice.