Integrating Philanthropy into Your Oklahoma City Estate Plan

The holiday season is a time of generosity and giving back. This year, consider going beyond just gifting family members by integrating charitable giving into your Oklahoma City estate planning. Here are two prime examples of how setting up a charitable trust or foundation can benefit local families:

1. Supporting Oklahoma City Charities Long-Term

By establishing a charitable remainder trust or private foundation, you can create a consistent stream of funding for your chosen Oklahoma City-area charities. This steady support can help local nonprofits thrive for decades by relying on your estate’s yearly contributions. Structured properly by an estate planning attorney Oklahoma City residents trust, these vehicles let you leave a lasting legacy across the community.  

2. Tax Savings for Oklahoma City Families

Charitable trusts and foundations provide excellent tax savings for both the grantor and their beneficiaries. From income tax deductions to reduced capital gains and estate taxes, philanthropic planning is a strategic tax move. An experienced Oklahoma City estate planning lawyer can help structure your charitable vehicle to maximize tax savings under the current laws. This means leaving more for your family and causes.

Charitable Trusts: A Win-Win

When you establish a charitable trust, not only are you bolstering causes close to your heart, but you also secure a tax break for yourself and your beneficiaries. Sure, the IRS keeps a keen eye on these trusts, but the rewards are enticing.

Dive into Charitable Remainder Trusts

These trusts start off as standard irrevocable trusts. They demand a living beneficiary (lasting

either 20 years or more). Funds are placed in the trust, and the beneficiary gets periodic

payments. Once the trust tenure ends, the balance is directed to designated charities.

There are two key types:

1. Annuity Trust: Here, beneficiaries get a fixed amount, but it shouldn’t exceed 50% of the

initial asset value.

2. Unitrust: This pays a percentage of the asset value to beneficiaries, re-evaluated yearly, maxing out at 50%. Before diving in, chat with your legal and financial team to navigate the specifics.

Exploring Pooled Charitable Trusts

Imagine a trust where multiple donors pool their resources. That’s a pooled trust! It’s typically run by a nonprofit, collecting and managing donations. Beneficiaries get a slice of the pie until they pass on, post which the balance goes to charity.

The unique thing about pooled trusts? They’re more public, involving multiple donors, and hence, can offer slightly reduced returns. They also can be a lifeline for folks on government aid, ensuring they don’t lose out on benefits if their income fluctuates.

Crafting a Trust: An Art & a Science

Creating a trust isn’t a walk in the park. It’s essential to structure charitable contributions right, ensuring both donor and beneficiary thrive. So, if you’re feeling philanthropic, loop in an estate planning lawyer to map out the ideal trust structure for you.

Beyond these two primary examples, here are ten reasons why Lai & Turner think philanthropic planning is beneficial:  

1. Supporting Oklahoma City Charities You Care About

2. Leaving a Lasting Legacy Across the Community  
3. Getting Income Tax Deductions for Charitable Contributions

4. Reducing Estate Taxes to Pass on More to Family

5. Avoiding Capital Gains Taxes on Asset Donations

6. Creating Intergenerational Family Giving Traditions

7. Teaching Your Children the Value of Giving Back

8. Honoring a Loved One’s Memory Through Charity

9. Establishing a Reliable Funding Stream for Causes in Need 

10. Impacting Local Issues You Care About in Oklahoma City

This holiday season, make giving back a priority by integrating philanthropy into your estate plan. Schedule a free consultation with Lai & Turner Law Firm PLLC by clicking this link to book your appointment and discuss charitable planning options unique to your family and causes you wish to support in the Oklahoma City area.

Estate Planning