Because most Americans do not have to worry about the estate tax, they should begin to focus on who should receive their wealth, how much they should receive, and the reasons why. Clients are often worried about letting their children inherit too much to the point it could keep them from developing their own lives. In addition to this concern, Americans are also strongly supporting charitable organizations and experiencing the joys of gift giving; as a result, more clients are providing for charitable contributions in their estate plans. Charitable giving, however, reduces taxes, which means leaving more to their heirs. So, where does the balance lie? “Charitable inheritance” assesses the inheritance plan and sets up a donor-advisor fund for clients to set aside inheritance assets that will allow heirs to continue their parents’ legacies and build their own.
See Charlie Jordan, Charitable Inheritance Dilemmas, Financial Advisor, February 1, 2017.
