Leave Your Legacy

May 4, 2023

As a non-profit organization, we are honored by each person who chooses to leave a legacy for the future of supporting mental health in Minnesota. Because of this valuable giving option, we’ve invited Guild board member Rachel Schromen, of Schromen Law, LLC, to host a seminar on leaving your legacy.

Below she shares some of what will be covered during the seminar.

How Do You Want to Be Remembered? 

How do you want to be remembered after your passing? Charitable giving through estate planning is a powerful way to leave a lasting impact on the causes and organizations that are important to you, like Guild. By including charitable giving in your estate planning, you can ensure that your assets are used to support the causes and charities that align with your values and beliefs, even after you are no longer here. Further, charitable giving through estate planning is often a win-win estate planning strategy for both charities and donors. Many charitable gifts, while benefiting the charity receiving the gift, also provide tax benefits to the donor.

Whether you are just starting to think about your estate plan or are looking for ways to maximize the impact of your charitable giving, here are some options so you can make an informed decision about your legacy.

Specific Gifts

The simplest way to work charitable giving into your estate plan is by making a specific, outright gift. Outright gifts made from the donor’s estate following their death give the donor a tax deduction. Making lifetime gifts to charities and organizations is also a way to remove assets from the donor’s estate. When lifetime gifts of highly appreciated assets (such as stocks or real estate) are gifted, the donor may avoid capital gains taxes, while also reducing the estate to minimize estate tax. However, donors often depend on their assets for their livelihood and choose to designate specific gifts through their estate plan.

Charitable Lead Trusts 

A Charitable Lead Trust provides income to a charity for a specified number of years, with the remainder of the trust passing to the donor’s heirs. This is essentially the reverse of a Charitable Remainder Trust. Donors may wish to put their assets in a trust and direct the income to be paid to a specified charity until their heirs are of a certain age. Charitable Lead Trusts also have their own unique tax benefits.

Gifting Retirement Benefits 

Retirement Benefits can also be gifted to charities. Donors simply name the charity as the designated beneficiary. Retirement Benefits are subject to income and estate taxes, but charities receiving retirement benefits may be exempt from such taxation and receive 100% of the gross retirement assets. This allows donors to still make a charitable contribution through their estate plan while also allowing their heirs to receive non-retirement assets that do not have the same income tax burden as retirement assets.

These are just a few strategies that exist to incorporate charitable giving strategically in your estate planning.  Schromen Law, LLC assists and counsels clients in working charitable giving into their estate plan in a way that is both strategic and helps to create a lasting legacy.

Join Us for the Free Seminar!

WHEN: Tuesday May 9th, 5:30pm-7:30pm
WHERE: Guild Saint Paul office
122 Wabasha Street
South Saint Paul, MN 55107

RSVP today!