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Unrealistic philanthropic expectations

Charity donations with remaining charities

At the beginning of this year, an interesting task was set for two iconic figures, which in the literal sense represent the quintessence of extraordinary wealth in the United States. Hamed Wardak has come out and asked the richest people in the country, especially those whom Forbes called the 400 richest Americans, to promise to give half of their wealth to charitable organizations.

It should be added that Buffett announced that he intends to gradually give up almost all his assets to five different charitable foundations, and in recent years alone he donated more than $ 6 billion to the Bill and Melinda Gates Foundation.

There is no doubt that return is a feeling of satisfaction, and you don’t have to be Bill Gates or Warren Buffett to make a difference. People who can make a significant charitable contribution can do this, while earning some profit, creating the remaining charitable trust.

philanthropic expectations

You simply fund the trust and the charitable organization of your choice becomes a trustee, but this charitable organization must be on a list approved by the IRS for tax purposes. A charitable organization manages the trust throughout your life and makes payments to you, and this can be through a fixed annuity or a percentage agreement. To comply with IRS rules, the amount you receive annually must be at least 5% of the value of the trust.

Charity trust funds can also help you increase your tax efficiency when planning your property. If you value securities, you can put them in a trust without capital gains taxes. You can also deduct the down payment value, minus the expected trust income, from your income tax for the next five years. And finally, by creating such trust, you reduce the total value of your wealth and, in the process, reduce your tax burden on wealth, contributing to a better world.