When creating your estate plan, charitable planning may not be the first thing that comes to mind. However, incorporating charitable giving into your overall plan can be powerful. Careful planning can support causes that are important to you, and it can leave a lasting impact on your community. 

Krause Estate Planning guides our clients through the charitable planning process. We help them identify their philanthropic goals and develop strategies to achieve them. Whether you want to create a charitable trust, make a multi-year pledge, or leave a bequest in your will, our team knows how to make your aspirations a reality. With our help, you can ensure that your legacy extends beyond your lifetime and positively affects the world.

For a free consultation, contact us today at (608) 344-5491 or online. Our Brookfield lawyers are here to help.

What Is Charitable Planning?

Charitable planning is a part of your overall estate plan. In this process, you strategically donate money and assets to charity organizations. By creating a careful plan, you can contribute to important causes while taking advantage of various tax benefits. 

Charitable planning typically involves creating a separate organization, enabling you to make donations on a regular basis. 

The goal of charitable planning is to make sure your donations have a positive impact on society while also giving you financial benefits. The process can be complex, involving set-up costs and legal considerations, but the benefits are significant for both the individual and their chosen charity.

Charitable Planning Options

Charitable Lead Trusts (CLT)

With a CLT, you can transfer assets to a trust. That trust then pays a portion of its income to a charitable organization. 

Typically, a CLT predetermines the number of years it will donate to a particular organization. At this period, the remaining assets pass to your designated beneficiaries, such as family members or other loved ones. 

A charitable lead trust allows you to support a cause you care about, gives your family potential tax benefits, and protects your assets.

Our team can review your circumstances and help you decide if a CLT is the best choice for you and your goals.

Charitable Remainder Trusts (CRT)

A CRT allows the donor to transfer assets into a trust. The trust then makes regular payments to a named beneficiary for a set number of years or until the beneficiary’s death. After that, the remaining assets go to a specified charity. 

Using a charitable remainder trust allows the donor to provide a steady stream of income to a loved one and eventually give to a charitable cause. Doing so can provide a sense of fulfillment and satisfaction to the donor, but it can also offer tax benefits. 

A CRT is not suitable for everyone. Make sure to meet with our team, and we can help you determine the best course of action.

Private Foundations

A private foundation is a non-profit organization. Individuals, families, or corporations can create a private foundation, and a board of directors manages it.

A private foundation takes in and uses funds to champion a specific cause. For example, a private foundation could devote its resources to disease research; it could support young people who want to enter a certain profession; etc. Private foundations can far outlive those who establish them, creating a lasting legacy that positively impacts the future. 

Additionally, private foundations offer tax advantages. For instance, they enjoy charitable tax deductions for the donations they receive. 

With careful planning and guidance, a private foundation can be an effective tool for supporting charitable causes close to your heart.

Charitable Donor-Advised Funds

With a donor-advised fund, you set up a charitable foundation, choose the charities you want to support, and manage your fund's investments. These funds are also flexible. They allow you to make changes to your charitable giving as your needs and interests change. 

Donor-advised funds are an excellent way to support charitable organizations and benefit from tax benefits. In Wisconsin, using these funds has become increasingly popular. Many individuals and families create private foundations or use existing community foundations to establish funds. 

Krause Estate Planning understands that you want to give back, especially if you have been fortunate in life. We are here to help with your charitable planning in Brookfield and beyond, so contact us online right away.