Charitable Planning
If giving back is part of how you have lived, it can be part of your legacy as well. We help you structure gifts to the causes that matter to you in ways that also make financial sense for your family and your estate.
Giving as Part of Your Estate Plan
Charitable planning does not have to be complicated. For many people it is as simple as including a bequest in their will, leaving a specific dollar amount, a percentage of the estate, or a particular asset to a nonprofit they care about. That alone is a meaningful act and one that costs nothing during your lifetime.
For others, particularly those with larger estates or significant appreciated assets, there are planning strategies that can benefit charities during your lifetime, reduce income or estate taxes, and still provide income or other benefits for your family. We explain the options in plain terms and help you decide what fits.
Common Charitable Planning Strategies
Charitable bequest. The simplest approach: a gift to a nonprofit organization through your will or trust. You maintain full control of the asset during your lifetime. Bequests are deductible from your taxable estate and can be directed to any qualified charity.
Qualified Charitable Distribution (QCD). If you are 70½ or older and have an IRA, you can direct up to $111,000 per year (2026 limit, indexed for inflation) directly from the IRA to a qualified charity. The distribution is excluded from your taxable income, more efficient than taking the distribution and then donating it.
Charitable Remainder Trust (CRT). You transfer appreciated assets to a trust, which sells them tax-free and reinvests the proceeds. The trust pays you (and/or your spouse) an income stream for life or a term of years, then passes the remainder to charity. You receive a charitable deduction in the year you fund the trust.
Charitable Lead Trust (CLT). The reverse of a CRT: the charity receives income from the trust for a term of years, after which the remainder passes to your heirs. A CLT can be effective for transferring assets to the next generation with reduced gift and estate taxes.
Donor-Advised Fund (DAF). A flexible giving account held at a sponsoring organization. You contribute assets now (and receive an immediate deduction), then recommend grants to charities over time. DAFs accept cash, appreciated securities, and other assets.
Donating highly appreciated assets (stock, real estate, or a business interest) directly to a charity or a charitable trust avoids capital gains tax that would apply if you sold the asset first. This is one of the most powerful and underused planning strategies available.
Working With Your Financial and Tax Advisors
Charitable planning overlaps with income tax, estate tax, and investment planning. We work alongside your financial advisor and CPA to make sure the strategy fits your overall picture. If you do not have those advisors, we can refer you to professionals we trust in the North Shore and Merrimack Valley area.