New Albany Charitable Planning Attorney for Estate & Charitable Donations in Indiana
Over 450 billion dollars is given to charities across our country each year. While much of the motivation behind such giving is simply to help those in need, it is vital to understand that charitable donations can also provide significant tax advantages.
At Plitz Estate Planning, we help residents of New Albany and the surrounding communities successfully incorporate charitable giving strategies into their estate plans. If you are interested in learning about the tax advantages associated with donating to charities and nonprofit organizations, we invite you to call our office to schedule a free initial consultation with experienced Indiana tax planning lawyer Jim Plitz.
Indiana Charitable Planning FAQs
Yes. While cash gifts can be beneficial to charitable organizations, donating appreciated stock can provide additional tax advantages. A charity is tax-exempt, meaning it can sell appreciated shares of stock without having to pay gains. In contrast, an individual would be responsible for paying long-term capital gains tax if they were to sell the shares before making a cash donation to a charity. Thus, if an individual contributes appreciated stock directly to a nonprofit, the long-term capital gains tax will be bypassed.
A charitable remainder trust (also referred to as a CRT) is an irrevocable estate planning document designed to convert an individual’s highly appreciated assets into a lifelong income stream while minimizing estate and capital gains taxes. CRTs are highly beneficial in that they not only provide valuable tax advantages, but they enable individuals to provide gifts to one or more charities.
A CRT can potentially:
- Minimize or eliminate capital gains taxes on the sale of appreciated assets;
- Significantly reduce estate taxes (that would otherwise need to be paid by your beneficiaries);
- Reduce income taxes by providing a sizable income tax deduction;
- Maximize the assets your family will receive after your passing;
- Avoid probate; and
- Provide vital support for charitable organizations.
Charitable Estate Planning Can Open the Door to Significant Tax Benefits & Provide Support For the Charities You Value Most!
If you are interested in exploring the benefits of supporting charities and nonprofits, we invite you to call our office to schedule a free initial consultation with experienced New Albany tax planning attorney Jim Plitz. Once he has learned about your assets and objectives, he can explain whether charitable giving may be an advantageous, tax-saving addition to your estate plan.
Satisfaction Guaranteed
Satisfaction Guaranteed – If you are not 100% satisfied with the service or process within 60 days of signing your estate planning documents, you will receive a full refund.
