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‘Tis the season for giving – especially for end of year charitable giving. In fact, one third of all charitable giving occurs in December, with the final three days of the year accounting for a whopping 12% of the entire year’s total.

Why December?

Donations made by December 31 – including checks mailed and credit card donations made by that same date – can all go towards tax deductions for the 2017 tax year. While we don’t yet know what next year’s specific tax laws will involve, it’s important to finalize any charitable giving by the end of this year.

Interested in continuing your charitable donations well beyond December?

For those looking to make a lasting charitable donation that creates a better financial return for both the charity and themselves, a charitable trust is a fantastic option.

A charitable trust enables an individual (the grantor) to transfer assets into a trust in which a charity is the trustee. Assets can include stocks, property, bonds, etc.

Once the asset is set aside in a trust, the trustee pays the grantor an annual income that is based on the value of the asset. The grantor is typically exempt from having to pay income tax on the annual income, but this is subject to change in 2018, pending any new tax legislation.

Tax-exempt or not, this payment to the grantor continues for the duration of the period stipulated in the trust documents, or until the grantor’s death. After the grantor passes away, the remaining income of the gift goes to the trustee (the charity.)

A charitable trust is a valuable part of any individual’s estate planning because it ensures that his or her legacy involves contributions towards a cause that is especially important to them. To learn more about this unique and important trust, contact our office today to set up an appointment. We look forward to helping you plan for the future, and wish everyone a happy end to 2017!