Estate Planning 101
Estate and Gift Taxes
Terminally Ill


In addition to outright gifts of cash or property during one's life or upon one's death, there are forms of trusts that can provide income tax savings during one's life and estate tax savings upon one's death. These types of trusts are known as Charitable Remainder Trusts (which come in two varieties, the "Unitrust" and the "Annuity Trust"-- the CRUT and the CRAT, respectively), pooled income funds, and Charitable Lead Trusts (which also come in "unitrust" and "annuity trust" varieties). Charitable Remainder Trusts provide income to a non-charity (spouse, parents, children) during their lifetimes or for a term of years with property ultimately passing to the charity. The "Lead" Trust is the reverse. The pooled income fund is established by the charity and is like a mutual fund, paying out its investment earnings throughout the donor's lifetime or a term of years, and then retaining the principal for its charitable purposes. Community Foundations and private foundations are also popular vehicles for charitable giving. There are income, gift, and estate tax deductions for qualified gifts to charity.

bulletHere's a handy calculator for charitable gifting.

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