Do you have the desire to memorialize a loved one's passion for giving back to the community? Do you want to show your thanks for the education you received by creating a scholarship for deserving young people? Are you interested in supporting groundbreaking medical research into treatments for a disease that has personally touched your family?

The desire to make a difference and leave a lasting legacy of support for your favorite charitable causes is admirable. However, donations must be carefully considered to maximize the value of your gift while preserving your own assets by minimizing your tax liability.

At Morris Law Group, we understand the intrinsic value and impact of charitable organizations in our communities and around the world. In fact, our firm prides itself on being involved in a multitude of charities. Many of our clients share our enthusiasm for giving back and seek assistance with planned giving to charitable causes.

The experienced legal team at Morris Law Group will work closely with you to create an effective charitable planning structure that takes into account your personal financial goals as well as what impact you hope to have with your charitable giving. Our attorneys combine estate planning with charitable giving techniques to help you achieve income, gift, and estate tax benefits.

Strategies to Consider for Your Charitable Legacy

Every client's financial situation is different, so there's no one-size-fits-all way to plan for charitable giving. However, a few of the strategies that we often use to maximize tax savings include:

  • Charitable Remainder Trusts. These trusts can be used to provide you with an income for living expenses and access to a partial tax deduction, while the trust's remaining assets are distributed after your death. There are two main types of Charitable Remainder Trusts. Charitable Remainder Annuity Trusts distribute a fixed annuity amount each year with no additional contributions, while Charitable Remainder Unitrusts distribute a fixed percentage based on the balance of the trust assets with the possibility of making additional contributions.
  • Charitable Lead Trusts. This type of Irrevocable Trust reduces a beneficiary's potential tax liability upon inheritance while offering additional income tax deductions for charitable donations and savings on estate and gift taxes. Payments are donated to a charity out of the trust for a set period of time before the remainder of the assets are paid to the beneficiary.
  • Charitable gift annuities. A charitable gift annuity preserves the value of highly appreciated assets, provides you with a source of lifetime income, and generates key tax deductions while providing long-term support for your favorite charitable organization. Charitable gift annuities are referred to as a "split gift" because part of your gift will be used by the charity immediately and part of the gift will be set aside in a reserve account to be invested so it can support your future income. When you pass away, the remaining balance of the account then goes to the charitable organization you've selected.
  • Private foundations. Typically, private foundations are established in honor of a loved one and make grants to various charities. They are an excellent way to encourage multiple generations within the family to participate in giving back to the community while still generating key tax benefits.
  • 501(c)(3) organizations. Under federal law, a 501(c)(3) organization is a charitable organization exempt from federal income tax. Donors also receive important tax deductions for their contributions to charities with 501(c)(3) organization status.
  • Donor-advised funds. This type of charitable giving vehicle is administered by a charity that manages donations on behalf of families, individuals, or organizations. Donor-advised funds are commonly chosen for charitable planning because of their simplicity and flexibility. You receive a tax deduction immediately when you make contributions, your funds are invested for tax-free growth, and you have the ability to recommend the fund give grants to any IRS qualified public charity.

Depending on the size of your assets and how much you plan to leave to charitable causes, these strategies may be utilized independently or in conjunction with each other.

Request a Consultation Today

Charitable giving must be considered carefully to ensure that your generosity has the greatest possible impact. Schedule your consultation now to discuss your charitable planning needs with one of our qualified attorneys. We have four convenient offices in South Florida, including our headquarters in Boca Raton, as well as locations in Aventura, West Palm Beach, and Weston.