Estate planners typically view charitable bequests as a means to avoid estate tax but not income tax. This narrow perspective represents a lost opportunity for income tax savings. Such savings may be achieved through income-based charitable bequests. A possible strategy to achieve this end is to reallocate charitable bequests to the income section of the controlling instrument. Such a move represents a complete change in the traditional methodology for drafting charitable bequests.
See Christopher R. Hoyt, Tax Savings with Income-Based Charitable Bequests, Probate and Property Magazine, October 2017.
