Donating assets to charity is not only a good way to give back to society, charitable giving can also have financial benefits for estate planning. The IRS permits taxpayers to deduct charitable donations up to 50% of their adjusted gross income. A taxpayer can reduce his or her taxable income by itemizing charitable deductions. Being able to deduct charitable donations from taxes can give a client the freedom to use their assets to support causes that are important to them. The Client can set up a charitable trust that could be viable for a long length of time, thus teaching future heirs the benefits of charitable giving. The financial and philanthropic benefits of charitable giving for both estate planning and the greater good of society are too numerous to pass up.
See Jason Notte, Why Charitable Donations Are Great for Your Retirement and Estate Planning, The Street, June 12, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
