If an individual desires to benefit a church, synagogue, educational institution, hospital or other charitable organization, charitable giving may be as fundamental a part of overall Estate Planning as providing for a spouse and children. Even for those with lesser charitable inclinations, charitable giving offers many Estate, Gift and Income Tax advantages.
An individual may create a Charitable Remainder Annuity Trust for the ultimate benefit of one or more charities, while reserving an annuity for life or a term of years, payable from the property donated to the Trust.
At the end of the term of years or at the death of the annuitant, the remainder passes to the charity named in the Trust.
Donor Advised Funds are public charities, or subsidiaries of public charities, that give donors the ability to make a large gift to the charity and then “advise” without the legal right to direct how and when to make (later) specific charitable requests.