Understanding Charitable Planning

Mason Law and Planning Group, P.C. has experience in counseling individuals and families who are charitably inclined. Advising clients in Charitable Estate Planning matters requires a unique blend of technical knowledge in estate and tax law, as well as an understanding of philanthropic motivation.  We help our clients design and implement the right planning strategy to meet their charitable goals. Some of the strategies we use include:

Charitable Lead Trusts (CLT)
A Charitable Lead Trust allows you to transfer ownership of assets to a trust during life or after your death.  The trust creates an income stream to a public charity or private foundation for a specified number of years.  At the end of that time period, the remaining interest is transferred to the beneficiaries of your choice, typically free of estate and gift taxes.

Charitable Remainder Trusts
One of the most common charitable planning tools is the use of charitable remainder trusts (CRTs).  A CRT lets you convert a highly appreciated asset like stock or real estate into lifetime income. It reduces your income taxes now and estate taxes when you die. You pay no capital gains tax when the asset is sold. And it lets you help one or more charities that have special meaning to you.
Private Charitable Foundation
Private Foundations offer an excellent opportunity to educate family members about philanthropy.  A private foundation is a nonprofit organization having a principal fund of its own and managed by its own trustees for the purposes of social, educational, charitable, or religious activities serving the common welfare.  Private foundations offer you a significant amount of control in determining how funds are used and may make grants to other nonprofit organizations.  Contributions to private foundations are deductible for federal gift and estate tax purposes.  Significantly, the private foundation may provide a tremendous opportunity for donors to educate family members as to the donors' philanthropic goals, and may also provide younger family members with a sense of responsibility and stewardship of family wealth.