12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

What are Charitable Gifts and Trusts in Monroe Bridge, MA

What are Charitable Gifts and Trusts in Monroe Bridge, MA


Charity begins at home, but should not end there.
 
- Thomas Fuller


Americans give more to charity than all other nations combined. Popular charitable institutions are churches, food banks, cultural institutions, and educational institutions.

The U.S. tax rules support charity and philanthropy with tax benefits. If you itemize deductions on your income tax return, you can simply deduct the value of gifts to tax-exempt charitable organizations. There are also more sophisticated ways to support your favorite recipients. For example, charitable gift annuities allow you to donate to a charity and in return receive regular payments for life; both you and the charity benefit.

When you make a simple direct charitable contribution, you support the charity of your choice and you can deduct the amount of these gifts from your taxable income if you itemize your deductions. Claiming a charitable deduction is simple when you write a check to a charity or make an online donation with your credit card. For a cash gift of any amount, you need a receipt (showing the date and amount of your donation) or a bank or credit card statement, payroll deduction record, cancelled check, or other bank record showing the transaction.

There is some risk in these instruments, they do not have FDIC protection or a government guarantee on charitable gift annuities, and so if the charitable institution runs out of money and files for bankruptcy or closes down, you would lose all future annuity payments. Some charities carry insurance to cover annuity payments. The payments can start immediately, or be deferred until you reach a certain age. Typically, payments are made quarterly.

Each charity sets a minimum amount you must donate (usually starting at $5,000 or higher) and a minimum age (typically 50 or older). If you are younger than the minimum age, you can donate now, but defer the payment of benefits until the required age. You'll still get a tax deduction for your charitable gift now, and if your donation grows (as it's invested by the charity) you won't owe tax on the increase in value. If you donate financial assets that have appreciate in value, (stocks, bonds, etc.) you won't owe capital gains tax when you make the transfer. A portion of the annuity payments aren't taxable because they are treated as a refund of the principal you gave to the charity. After you reach your statistical life expectancy, however, you'll pay tax on the payments as ordinary income.

Charitable trusts are an option for the wealthy to donate charity while reducing their estate tax obligations. A charitable lead annuity trust gives you a way to make a large gift to charity, get a tax break, and eventually leave assets to family members. These trusts are complicated, and they're most often used by rich people who want to donate to charity and avoid the federal gift and estate taxes.

You may also set up a charitable remainder trust and transfer to it the property you want to donate to a charity. The charity must have tax-exempt status under the Internal Revenue Code.The charity serves as trustee of the trust, and manages or invests the property so it will produce income for you. The charity pays you (or your designee) a portion of the income generated by the trust property for a certain number of years, or for your whole life. At death, the property goes to the charity.

A pooled income charitable trust allows a charity to set up the trust and then accept donations that are much smaller than a charitable trust founded by an individual. All the donations are pooled into one big fund and then invested, much like a mutual fund. The fund then pays income to the donors, based on its return on investment. Typically, they also allow you to add small subsequent contributions over time, so you can still build a good retirement income over many donations over many years.

A charitable gift annuity is a contract between you and the charity. You donate to the charity, and in return the charity agrees to make regular fixed payments to you (or a designee) for your lifetime. When you make your initial gift, you can take an immediate income tax deduction for the estimated amount that will eventually go to the charity, after all the annuity payments have been made (typically half the amount put into the annuity). A portion of the payments you receive will also be tax-free, until you reach your statistical life expectancy.
 
Personalize & Print a Free MA Living Trust Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Related Legal Services near Monroe Bridge, MA
Kaufman Paul W
933 Webster St
Marshfield, MA 02050
(781) 837-9944
General Practice Attorneys, Attorneys
Ellis Law Offices LLP
350 Main St
Southbridge, MA 01550
(508) 764-9797
Attorneys, General Practice Attorneys, Legal Service Plans
Humphries Jr John W
55 Pleasant St # 6
Newburyport, MA 01950
(978) 462-9791
Attorneys, Legal Service Plans
Attorney Sheila C. Harrington
2 Hollis St
Groton, MA 01450
(978) 448-9601
Personal Injury Law Attorneys,  Attorneys,  Real Estate Attorneys,  General Practice Attorneys,  Est
Lawrence Christopher
111 Everett Ave
Chelsea, MA 02150
(617) 887-9500
Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  DUI & DWI Attorneys,  Legal Clinics,  Tra
Rotondi Charles D
79 State St
Newburyport, MA 01950
(978) 462-9393
Attorneys, Legal Service Plans
Quigley John E
10 State St
Newburyport, MA 01950
(978) 465-9015
General Practice Attorneys, Attorneys
Sandman James Attorney
79 State St
Newburyport, MA 01950
(978) 961-9014
Employee Benefits & Worker Compensation Attorneys, Social Security & Disability Law Attorneys
Nigro Pettepit and Lucas LLP
1 Inn St
Newburyport, MA 01950
(978) 462-9008
Attorneys, General Practice Attorneys, Legal Service Plans
Sullivan Joseph P
246 High St
Newburyport, MA 01950
(978) 499-8900
General Practice Attorneys, Attorneys, Legal Service Plans
A Better Way Divorce Mediation
491 Main St
Groton, MA 01450
(978) 448-8884
Arbitration Services,  Attorneys,  Counseling Services,  Mediation Services,  Legal Service Plans
Kraft & Hall
800 Broadway
Chelsea, MA 02150
(617) 884-8840
Attorneys, Legal Service Plans
Common Ground Mediation
142 Main St Ste 2
Groton, MA 01450
(978) 448-8800
Estate Planning Attorneys, Arbitration Services, Attorneys
Manugian Aleta
112B Boston Rd
Groton, MA 01450
(978) 448-8800
Attorneys, Estate Planning, Probate, & Living Trusts, Real Estate Attorneys, Estate Planning Attorne
Michael S Baird
844 Webster St
Marshfield, MA 02050
(781) 536-8503
Attorneys
Palmisano Charles
11 Liberty St # A
Newburyport, MA 01950
(978) 462-8488
Attorneys, Legal Service Plans
Attorney Jeffrey T. Karp, P.C.
54 State Street, 2nd Floor
Newburyport, MA 01950
(978) 225-8363
Attorneys, Criminal Law Attorneys, Family Law Attorneys, Divorce Attorneys, DUI & DWI Attorneys
Sheldon Peter B
491 Main St
Groton, MA 01450
(978) 448-8300
Attorneys,  Mediation Services,  Arbitration Services,  Legal Service Plans
Ron St Pierre Law Office
316 Merrimac St
Newburyport, MA 01950
(978) 499-7947
Attorneys, General Practice Attorneys, Legal Service Plans
St Pierre Ron
316 Merrimac St
Newburyport, MA 01950
(978) 499-7947
General Practice Attorneys, Attorneys, Legal Service Plans
Manugian Aleta
112 Boston Rd
Groton, MA 01450
(978) 732-7928
Attorneys, Estate Planning Attorneys, Estate Planning, Probate, & Living Trusts
Bergeron Michael
871 Webster ST
Marshfield, MA 02050
(781) 834-7877
General Practice Attorneys, Attorneys, Legal Service Plans
Williams David C
6 Harris St
Newburyport, MA 01950
(978) 499-7771
Attorneys
Alter & Harrington
73 Main St
Groton, MA 01450
(800) 570-7766
General Practice Attorneys, Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US