At Intelligent Investing, we prioritize the passing on of our clients’ family values, recognizing that this holds more significance than the transfer of material wealth outlined in estate planning. Beyond the formalities, we delve into the core values of our clients, ensuring they are effectively shared with cherished charities and organizations. Our approach to family wealth planning for high-net-worth clients extends to various strategies, such as private foundations, Charitable Trusts, and other nuanced methods.
Basic Charitable Gifting Strategies
Here are some of the ways we can help maximize your giving:
- Bunching Charitable Giving: Bunching multiple years of gifts into one deduction either through a donor-advised fund or year-end donations for those taking itemized deductions allows for immediate credit and flexibility in spreading donations.
- Tax-Loss Harvesting: In times of market volatility, we consider tax-loss harvesting by selling underperforming stocks to potentially offset capital gains and receive charitable deductions.
- Charitable Distributions (QCDs): Older individuals can make tax-free gifts from their IRAs to qualifying charities, potentially reducing taxable income.
- Donate Appreciated Stocks: Donating appreciated stocks allows you to save on capital gains taxes while providing significant benefits for both you and the recipient.
Charitable Giving for High-Net-Worth Individuals?
Charitable giving for HNW clients goes beyond basic strategies. It involves advanced approaches such as donor-advised funds, charitable trusts, and private foundations. The following goes into more detail about these complex charitable giving strategies.
3 Additional Methods of Family Wealth Philanthropy for HNW Clients
HNW philanthropists often employ advanced mechanisms for charitable giving. Here are three additional methods:
- Private Foundations: Establishing a private foundation provides tax planning benefits and allows philanthropic families to manage the strategy and allocation of funds, ensuring a lasting impact.
- Donor Advised Funds: DAFs offer flexibility, immediate tax deductions, and the ability to grow assets tax-free, making them an attractive option for strategic charitable giving.
- Charitable Trusts: Explore Charitable Lead Trusts and Charitable Remainder Trusts, which provide income for donors while supporting charities. These irrevocable trusts offer both tax benefits and wealth preservation.
Maximize Your Charitable Giving Benefits With Intelligent Investing
Charitable giving should be a fulfilling and stress-free aspect of your overall financial planning. Embark on a philanthropic journey that aligns with your values. Allow us to guide you through the intricacies of charitable giving, transforming your wealth into a force for positive change. Together, let’s create a legacy that extends beyond numbers – a legacy that truly matters.
Contact us today to explore the transformative possibilities of philanthropy with Intelligent Investing.
