Charitable Giving

Persons who have adult children who are already provided for may be inclined to make substantial charitable gifts, both during life and at death. Such gifts can reduce substantially or even eliminate estate tax. If made during life, substantial income tax savings are also possible. Lifetime gifts to charity qualify for an unlimited gift tax charitable deduction. An unlimited deduction from the gross estate is available for property passing by will or other transfer at death to a qualified charitable recipient.

Unlike the income tax charitable deduction, there is no monetary or percentage limit on the estate or gift tax charitable deduction. For example, if the decedent’s entire gross estate passes to a qualifying charity, the entire amount is deductible and the decedent’s
estate will pay no estate tax.