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Philanthropic Planning

We have helped generations of families develop wealth transfer strategies that seek to reduce estate taxes while pursuing specific legacy and philanthropic goals.

Guidance from a competent, experienced advisor can go a long way toward helping to make sure your financial success is shared with your family, friends and the charitable organizations you designate, according to your wishes.

Our experienced advisors can help you create a strategy that supports your philanthropic goals and objectives while allowing you to enjoy the personal and financial benefits of giving. The following are among the many approaches available to help you pursue specific goals for philanthropic giving, income generation and minimizing estate and income taxes:

Charitable Remainder Trusts
A charitable remainder trust is an irrevocable trust with both income and remainder interests. Income is paid to designated beneficiaries for a term or lifetime. The remainder interest is paid to qualified organizations as specified in the trust document when the trust terminates.

Charitable Lead Trusts
In a charitable lead trust, the trust pays a fixed percentage of assets to a qualified charity for either a set number of years or for the life or lives of the individuals. When the amount of the trust has ended, the remaining assets are distributed to the donor or heirs as noted in the terms of the trust.

Donor-Advised Funds
Donor-advised funds are charitable giving accounts offering an accessible, simple, and less expensive alternative to establishing a private foundation. Donors contribute tax-deductible assets to their accounts and decide when and which charitable organizations will receive gifts or grants, and the amount of the gifts over time. The sponsoring organization, usually a financial services provider, does the record keeping and due diligence, and, unlike private foundations, can protect a donor's identity if requested.

Irrevocable Life Insurance Trusts
An irrevocable life insurance trust (ILIT) is typically used to shelter an insurance death benefit from estate taxes and may provide liquidity to pay estate taxes and settlement costs. A trust is created, and then the trust purchases and owns a life insurance policy. Upon death, the insurance proceeds are paid out in accordance with the terms of the trust.

Private Foundations
A private foundation is a legal entity set up by an individual, a family or a group of individuals for philanthropic purposes. Unlike charitable foundation, a private foundation does not generally solicit funds from the public.

Supporting Organizations
A supporting organization is a charity that carries out its exempt purposes by supporting other exempt organizations, usually other public charities. This classification is important because it is one means by which a charity can avoid classification as a private foundation, a status that is subject to a more restrictive regulatory regime.

Life Estate
The right to the use and enjoyment of certain property (usually real estate) for life only. Someone who inherits a life estate in a house may live in the house for his or her life but has no right to sell it or to confer it at death. For example, a man in his second marriage might leave a life estate in his house to his surviving wife, with the provision that at her death, it is to go to his children from his previous marriage.

IRA Donations
As an alternative method for donating to a charity, certain taxpayers may transfer funds from their IRA to an eligible charitable organization. To qualify, the funds must be contributed directly by the IRA trustee to the eligible charity and meet specific IRS guidelines.

CONTACT US to request your complimentary copy of:

You, Your Family and Your Lasting Legacy
A simple guide to doing good.
By Arthur D. Kraus, CAP®, CLU, ChFC


We Help Clients Teach Values

Some of our clients have asked us to teach their teenagers financial literacy. In one case, we worked with a client?s children before they received a large inheritance from their grandparents. We set up a charitable gift fund that engaged the kids, teaching them how to make investment decisions and research charities.

Because it's your legacy™