When you give property you have owned longer than a year and a day that has increased in value since you acquired it, you are usually entitled to an income tax deduction for the full current value of the asset, not just your cost basis. Many donors would like to make larger charitable gifts but find it difficult to do so in light of personal planning considerations, such as the need to plan for retirement, eldercare, educational expenses, and other financial commitments. Fortunately, a number of planning tools exist that can enable you to make gifts of a lifetime while first meeting a variety of personal goals. Giving through revocable living trust. Many use living trusts to provide for the management and final distribution of their assets.
Charitable gifts can be rewarding additions to living trusts.
Gifts that give back. These arrangements can provide an income tax deduction in the year the gift is made. Such plans may be used effectively in planning for retirement, caring for older relatives, and covering educational expenses. Increase income, replace assets. Charitable trusts and similar gift arrangements can enable you to convert appreciated, low-yielding assets into a source of additional income without incurring capital gains taxes at the time of the gift.