Gift Planning Strategies

Charitable Gifting Strategies

At Dickman Reason Bogigian & White we are estate planning attorneys who have helped many successful individuals, business owners, investors, and retirees with their gift planning and charitable giving. In essence, gift planning involves the giving of charitable gifts either now or after you die while enjoying the financial benefits of this transfer of assets. Often, these are more than just simple donations, and it is highly recommended to consult with an experienced gift planning attorney to optimize the benefit and effect of your gifts.

Gift planning is a way of supporting nonprofits and charities while creating a stronger future, securing your legacy, and enjoying some of the major benefits associated with this estate planning strategy. More importantly, gift planning is a tool that individuals of any income level can employ. To speak with an attorney about gift planning, you can call 317-462-1401.

What is Gift Planning?

Gift planning, sometimes known as planned giving, is different from simple donations. Instead, it is a well-prepared and detailed strategy, and due to the diligence that planned giving requires, it allows donors to give more than they would based on their income alone.

So, how does this work? First of all, there are three types of planned gifts, including:

  1. Gifts that use appreciated assets as a substitute for cash
  2. Gifts that return income or other financial benefits in return for the contribution
  3. Gifts payable upon the donor’s death

As you can see, the gifts in this plan are generally made from assets in your estate, as opposed to disposable income. Therefore, one of the most common gifts is a bequest in a will or living trust. Other planned gifts can include:

  • Charitable gift annuity
  • Charitable remainder trust
  • Endowment funds
  • Retirement plan assets
  • Life insurance policies
  • Remainder interest in property

Tax Benefits of Gift Planning

One of the main incentives of planned giving (aside from the philanthropic benefits and the sense of pride) is the various tax benefits. A few tax benefits of gift planning can include:

  • Donors are able to contribute appreciated property, such as securities and real estate. Therefore, donors can receive a charitable deduction for the full market value of the asset and pay no capital gains tax on the transfer of assets.
  • Donors who want to establish a life-income gift receive a tax deduction for the full market value of the contributed assets.
  • Donors who contribute following their deaths make the assets exempt from the estate tax.