Many people choose to voluntarily divert a portion of their accumulated assets for purposes in which they believe rather than have a significant portion of their estates redistributed for public purposes through the estate and gift tax system. After providing for your loved ones, you may decide to give a specific amount, a percentage of your estate, or all or a portion of what remains after individuals have been remembered. Your attorney can help you plan. Giving through revocable living trusts is another avenue to consider. More people now use living trusts to provide for management and final distribution of their assets.
Charitable gifts can be a rewarding addition to living trusts.
A simple amendment to a living trust can be all that is required to arrange a gift. Gifts that give back. These plans also yield an income tax deduction in the year the gift is completed. They may be used effectively in planning for retirement, caring for older relatives, and covering educational expenses for children or grandchildren. Such gifts can enable you to convert appreciated low yielding assets to a source of additional income without incurring capital gains taxes at the time of the gift.