Frequently Asked Questions about
Estate Planning, Wills, Trusts, and Probate

• What about charitable gifts? (I’d rather give my money to my alma mater than to the I.R.S.)

During the estate-planning process, you should consider whether you would like to make charitable gifts or bequests by will or trust. These might include gifts to your church, to nonprofit groups that have provided help to you or your family, to educational institutions that you or your family members attended, and to other groups that share your values and goals. In many cases, however, the uncertain needs of a surviving spouse or of your heirs may preclude any substantial charitable gifts. These often are difficult decisions to make, especially for rich people.

A gift to a church, ministry, or other qualified nonprofit organization will be completely exempt from income and estate taxes.

Rich (or even moderately wealthy) people who wish to benefit charity may wish to enter into annuity trust or gift annuity arrangements with worthwhile charities. Many such arrangements take advantage of the fact that appreciated or income-producing property may be worth more in the hands of the charity (which does not pay income or capital-gains taxes) than in your own hands, and use those tax advantages to provide substantial current or future benefits to you or to your heirs while still benefiting the charity itself.

“Mighty of heart, mighty of mind, magnanimous—to be this is indeed to be great in life.”  –John Ruskin