Charitable Planning in New Jersey & New York

Serving Individuals and Families Throughout Morristown, NJ and Midtown Manhattan, NY

As part of the estate planning process, we encourage and assist the tradition of giving to charitable causes. In addition to the many personal rewards inherent in making a charitable gift, most gifts also provide a current charitable income tax deduction. Some charitable giving strategies also save capital gains taxes, income taxes, and provide you, or whomever you designate, with an income for life. Additionally, these types of gifts may provide an estate tax deduction — an important consideration in planning your estate.

Making the Most of Your Charitable Giving in New Jersey

If given the choice between paying taxes (involuntary philanthropy), or making a charitable gift (voluntary philanthropy), most people would choose the latter, because it gives them the benefit of knowing who the money will benefit and how it will be used. The same cannot be said for money paid to the U.S. Treasury. We help clients make charitable gifts and practice good stewardship in the most tax-efficient manner.

There are many different ways to make charitable gifts:

• A charitable remainder trust or a charitable gift annuity will give you an immediate income tax deduction, a lifetime stream of income, and potential relief of federal capital gains taxes from the sale of contributed property.
• A charitable lead trust creates an income stream to charity for a term of years with the remainder of the trust going to your children with potentially significant transfer tax savings.
• A private foundation offers you the considerable freedom to control amounts given by placing restrictions on how your gifts are used by charities.
• A donor advised fund allows you to make tax deductible contributions to an account from which distributions are made to charities.

This has been a very general overview of a very complex subject matter. If there are causes or organizations you would like to support, while also maximizing your tax-saving strategies, please contact us to explore your options.