12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
Protect Your Family Today
with a Free Last Will & Testament
  • Finish and print in minutes!
  • Personalized for You
  • Written by expert Attorneys
  • Valid & Legal for North Carolina

What are Charitable Gifts and Trusts in Chapel Hill, NC

What are Charitable Gifts and Trusts in Chapel Hill, NC


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.
 
Download & Print a Free NC Living Trust Personalize This Document
Page 1
  Answer Easy
Questions
answer simple questions online step by step
Easy Questions, Instant Documents
  • Finish in Minutes
  • Download Immediately
  • Written by Attorneys
  • 100% Guaranteed
  Get Instant Legal
    Documents

Print, save or email your finished legal document immediately!
Last Will & Testament
Related Legal Services near Chapel Hill, NC
Cordell & Cordell - Chapel Hill
1340 Environ Way
Chapel Hill, NC 27517
(919) 334-9900
Family Law Attorneys, Divorce Attorneys, Divorce Assistance, Child Custody Attorneys
Anthony Joseph E
1829 E Franklin St # 600
Chapel Hill, NC 27514
(919) 968-9400
Attorneys, Legal Service Plans
Nathaniel E Clement & Assoc
1414 Raleigh Rd Ste 290
Chapel Hill, NC 27517
(919) 929-9298
Estate Planning Attorneys, Attorneys
Shangler Dean A
1829 E Franklin St, Ste 600
Chapel Hill, NC 27514
(919) 942-9070
Attorneys, Accident & Property Damage Attorneys, Legal Service Plans
Brady, Elliot I Lewis Phillips Hinkle P
141 Providence Rd Ste 200
Chapel Hill, NC 27514
(919) 967-8989
Estate Planning Attorneys, Attorneys, Family Law Attorneys, Divorce Attorneys, Business Law Attorney
Brady Elliot I
141 Providence Rd Ste 200
Chapel Hill, NC 27514
(919) 967-8989
Divorce Attorneys, Attorneys, Family Law Attorneys, General Practice Attorneys
Lewis & Anderson PLLC
141 Providence Rd
Chapel Hill, NC 27514
(919) 967-8989
Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Family Law Attorneys,  Child Custody Attorn
Robinson Bradshaw & Hinson PA
1450-100 Raleigh Rd
Chapel Hill, NC 27514
(919) 328-8800
Attorneys
Law Center Atty
3 Winston Pl
Chapel Hill, NC 27514
(919) 967-8553
General Practice Attorneys, Attorneys, Legal Service Plans
Wagner Law Firm
100 Europa Dr # 569
Chapel Hill, NC 27517
(919) 537-8348
Family Law Attorneys,  Attorneys,  Divorce Attorneys,  Arbitration Services,  Arbitration & Mediatio
Daugherty Richard Randall
313 Granville Rd
Chapel Hill, NC 27514
(919) 942-8254
Mediation Services, Attorneys, Arbitration Services
Bernard, William D
101 N Columbia St
Chapel Hill, NC 27514
(919) 878-8061
Attorneys
Halpern, Adrian R
200 McCauley St
Chapel Hill, NC 27516
(919) 968-8027
Immigration Law Attorneys,  Attorneys,  Administrative & Governmental Law Attorneys,  General Practi
Everett Law Firm, P.A.
1829 E Franklin St Suite 1100-D
Chapel Hill, NC 27514
(919) 942-8002
Personal Injury Law Attorneys, General Practice Attorneys, Criminal Law Attorneys, Traffic Law Attor
Karen P Davidson
210 N Columbia St
Chapel Hill, NC 27514
(919) 918-7996
Family Law Attorneys, Attorneys
Brown Susan M PA
1829 E Franklin St # 600
Chapel Hill, NC 27514
(919) 933-7870
Attorneys, Family Law Attorneys, General Practice Attorneys, Legal Service Plans
Sacco James S
121 S Estes Dr Chapel 204B
Chapel Hill, NC 27514
(919) 967-7225
Attorneys, Legal Service Plans
Dayna Kelly
250 E Winmore Ave
Chapel Hill, NC 27516
(919) 969-7200
Immigration Law Attorneys, Attorneys
Bennick Donna PC
1829 E Franklin St # 600
Chapel Hill, NC 27514
(919) 968-6883
Attorneys, Family Law Attorneys
Holtkamp Law Firm
312 W Franklin St
Chapel Hill, NC 27516
(919) 960-6840
Malpractice Law Attorneys, Medical Malpractice Attorneys, Attorneys
Shangler Dean A
1340 Environ Way
Chapel Hill, NC 27517
(919) 636-6689
Personal Injury Law Attorneys, Attorneys
Mediation Inc J Anderson
2009 N Lakeshore Dr
Chapel Hill, NC 27514
(919) 967-6611
Mediation Services,  Attorneys,  Arbitration Services,  Legal Service Plans
Herman-Giddens, Gregory
205 Providence Rd
Chapel Hill, NC 27514
(919) 493-6351
Attorneys, Legal Service Plans, Tax Attorneys, Estate Planning Attorneys, Wills, Trusts & Estate Pla
Chapman, Heidi G
100-560 Europa Dr
Chapel Hill, NC 27517
(919) 968-6116
Employee Benefits & Worker Compensation Attorneys, Attorneys, Accident & Property Damage Attorneys,
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US