ESTATE TAXES

Incorporate charitable planning into your
estate plan

The 2001/2003 tax cuts increased the threshold for taxable estates and dramatically reduced estate tax rates. Today, only the amounts of estates that exceed $5.34M are taxable, at a maximum rate of 40%.

Building flexibility into your estate plan by creating charitable trusts may help you respond to estate tax changes while you honor your commitment to favorite charities. You may create a Charitable Remainder Trust (CRT) or Charitable Lead Trust (CLT) during your lifetime or through your will. There are no limitations on the total amount you may donate from your estate to these trusts, and the assets you transfer to charity are not taxed.

Steps you might take now

One way to build flexibility into your estate plan is to name a donor-advised fund (DAF) as one of the beneficiaries for your charitable trusts.

Naming a DAF as the beneficiary of a charitable trust gives you and your heirs the ability to:

  • Change the charities you support from year to year without needing an attorney to revise trust language
  • Vary the amounts you donate each year
  • Give family members advisory privileges over the DAF in order to further your charitable legacy for generations to come

Learn more

Explore the benefits of using a donor-advised fund in your estate plan.