As President Barack Obama officially declared the Boston Marathon explosions “acts of terrorism,” Americans were quick to rally and show off the true spirit of our nation. Tons of Boston businesses handed out supplies and offered safe havens for all affected. Hotlines opened up as did blood banks throughout the US and in South Florida. And as always, the donations of generous Americans started rolling in.
In the wake of yesterday’s tragedy, we are reminded with just how fragile life is and how lucky we are. Many of us want to donate to charities that help victims and their families. For those fortunate enough to make sizeable donations, the US government rewards such gratuity.
A smart way to qualify for income tax and estate tax deductions are through two common estate planning techniques known as Charitable Lead Annuity Trusts or Charitable Remainder Trusts. Charitable Lead Annuity Trusts (“CLATS”) allow an individual to transfer their assets to a beneficiary upon their death who can then donate the assets to a charity of their choosing. This will be treated as a charitable deduction and can substantially reduce your overall federal estate tax. A Charitable Remainder Trust (“CRT”) is an irrevocable trust. Once created, this trust distributes a portion of its assets at least once a year to a non-charitable beneficiary. After a specified number of years or upon the death of the trustee, the remaining balance in the trust is donated to a designated charity. This type of trust can immediately reduce an individual’s taxable income.
But the intricacies of such charitable trusts are best handled by experienced Florida estate planning attorneys. For more information on Florida income tax and estate tax deduction techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.
It’s a Wild world. Are you protected?SM