Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Sunday, November 29, 2020

Maximizing End-of-Year Charitable Giving

Estate planningThe holiday season is quickly approaching, which also means it is a popular time for charitable giving. Donors can be philanthropic in their charitable giving while also gaining tax advantages. 

One way donors can take advantage of these is to include a provision in your will or trust, which will provide a part of your estate to a charitable organization. Providing a gift to a charitable organization may allow your estate to receive an estate tax deduction. 

You can also gift securities through lifetime gifts. This method will allow the chosen charitable organization to receive the full value of stock and will allow you to take an income tax charitable deduction. 

You can also gift your IRA to a designated organization upon your death. This strategy requires you to file a beneficiary designation form with the IRA administrator. You can either gift the entire IRA or you can set a specific percentage for the organization to receive. The organization will not have to pay income taxes for withdrawals and will receive the full value of the gift. There is also another tax break for older donors that gift out of their IRA. 

See Eileen Y. Lee Berger, Maximizing End-of-Year Charitable Giving, Bowditch & Dewey, November 25, 2020. 

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.


Estate Administration, Estate Planning - Generally, Estate Tax, Gift Tax, Income Tax, Trusts, Wills | Permalink


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