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At Shaw & Nelson, LLC, we advise clients throughout Cincinnati and Louisville on charitable planning as part of a comprehensive estate planning strategy. Well-versed in the tax laws governing charitable giving, we can help you realize your vision of leaving a charitable legacy.

Our experienced trusts and estate attorney is here to advise you on organizing your assets and charitable planning. From the inherent reward of leaving a charitable gift to the related tax deduction, the benefits of charitable planning can last for generations. Contact us today to get started.

Charitable Planning Options for Cincinnati Estate Planners

Charitable planning will benefit your financial future and provide personal satisfaction. With a well-conceived gifting strategy, you can designate anyone to receive income for life and minimize capital gains taxes. In addition to benefitting individuals, communities, and causes you support, charitable gifting also provides an estate tax deduction. 

Above all, charitable planning allows you to leave a legacy to honor your family name. You can trust the charitable planning attorneys at Shaw & Nelson to help you explore a wide range of options, including:

Charitable Lead Trust (CLT)

This type of irrevocable trust provides income payments to a charity for a fixed period; after which the remaining assets either go to the person making the trust (a “grantor” CLT) or their designated beneficiaries (a “non-grantor” CLT). Potential trust assets include securities, real estate, and other types of property. 

A grantor CLT provides the trust-maker (or donor) an upfront income tax deduction for the present value of the trust assets but not future charitable distributions. A non-grantor CLT can minimize both estate and gift taxes, but assets cannot be removed once they are transferred to the trust.

Charitable Remainder Trust (CRT)

By contrast, in a CRT, assets are transferred to the trust which provides an immediate tax deduction, as well as income for a set period either to the trustmaker or a spouse. The remainder goes to a charity of your choice upon your death. Like a CLT, assets transferred into a charitable remainder trust cannot be removed once the trust is established.

Charitable Gift Annuity (CGA)

A charitable gift annuity shares some features of a charitable remainder trust, but the structure differs: a charitable gift annuity is an irrevocable contract between a donor and a charity whereby the donor transfers cash or property to the charity (e.g. university, nonprofit organization), in exchange for a partial tax deduction and a lifetime annual income stream from the charity. The payments are backed by the charity’s assets and are more regulated than assets in a CRT.

Donor-Advised Fund (DAF)

A donor-advised fund is a charitable investment account that functions as a 501(c)(3) not-for-profit organization, known as a sponsor or sponsoring organization. The donor can contribute cash, appreciated securities, real estate, and other property in exchange for an immediate tax deduction – the assets appreciate without tax consequences. While the donor can recommend prospective charities, the sponsor has the final choice on which one(s) receive the funds.

Charitable Planning Tips

The first step in charitable planning is choosing causes in which you believe. Do your due diligence to ensure the ones you choose are legit and confirm your gift will be used for the intended purpose, not to pay salaries or administrative costs. But be realistic about what proportion of your assets can be set aside for charitable giving. 

Notably, your charitable gift should not be overly restricted since this may make it difficult for the charity to use. For instance, if your assets are in stocks, donate them directly to the charity rather the selling and donating the profits. In any event, your charitable gift should not only benefit the charity but allow you to reap the tax benefits.

Why Choose Us?

While a common misconception is that charitable planning is only for the wealthy, many of us are capable of and wish to leave a charitable legacy. At Shaw & Nelson, we work with clients from all walks of life to create well-conceived gifting and asset protection strategies. 

Whether you have a sizable estate or modest assets you wish to set aside, we will tailor your charitable plan to your objectives. Our attorneys will take the time to ensure our plan includes all the tools you need to effectuate your plan, from wills and trusts to powers of attorney. You can be confident that your plan will be spelled out with precision. When you partner with us, your estate and your legacy will be in good hands.

Contact Our Cincinnati Charitable Planning Attorneys

At Shaw & Nelson, we work to help our clients leave charitable legacies and practice good stewardship in the most tax-efficient manner. Call us today to learn how charitable planning fits into your estate plan.