Charitable Trusts: Giving Back Plus Peace of Mind

Couple with dog

Charles and Linda (not their real names) are typical baby boomers. Charles served in Vietnam then used his GI bill to complete his college education with a major in accounting. He went on to work at a local medical center for 32 years. Linda was a teacher and taught middle school social studies for 35 years. They settled in Lexington and worked hard to raise their three children and provide them with a good education and a good start in life. Over the years Charles and Linda purchased a home which has significantly increased in value. They also have pensions that, along with their Social Security, have provided a secure retirement income. In addition, they have 401k retirement plans that they contributed to for their whole careers giving them a comfortable nest egg in the event of an emergency.

Tradition of Giving

Both Charles and Linda were raised in a strong tradition of service and giving back to their community. Over the years they have supported their church as well as several charities that are important to them. The local ASPCA has been a favorite beneficiary of their generosity as they have always had dogs and felt a deep appreciation for their pets. As they consider what will happen to their assets when they pass away, Charles and Linda felt that their children and grandchildren have been well provided for and are doing well in life. After leaving a generous amount to their children, they very much wanted to give some of their money to their favorite charities but were not sure of the best way. Like many of us, Charles and Linda felt comfortable financially but not wealthy. With health care costs rising rapidly they worried about possible future expenses as they age. Fortunately, Charles and Linda came to Stratton and Reynolds to discuss a comprehensive estate plan with our experienced team of attorneys.

Giving With Peace of Mind

When they came to our law firm, we discussed their goals with them, and our attorneys were able to put together an estate plan that fit their needs and their desire to give back. An important part of their estate plan was a charitable trust. There are several different types of charitable trusts and frankly it can get confusing. In addition, the tax laws regarding charitable trusts can be hard to decipher on your own. They also require some specific tax filings.

However, one the advantages for Charles and Linda was that they were able to move assets from their estate into the trust and realize some major tax savings right away, as well as some additional tax savings in the years to come. Charitable trusts can be set up so that the grantor receives payments from the funds until they pass away or so that their heirs will receive additional tax-free proceeds after the grantor's passing. Our attorneys were able to help Charles and Linda meet their goals of being financially independent while leaving a legacy that would help others for years to come.

Let us Help You Give Back

If you would like to plan for charitable donations while still maintaining peace of mind, call our law firm of Stratton and Reynolds today and come talk to us about your goals and the options available. Fill out the contact form or call 803-358-7214.

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