Over the last couple of decades, the concept of planned giving seems to have gained a lot of momentum in Florida and the rest of the United States. As people consider various options when engaging in estate planning activities, thoughts about how to also incorporate some philanthropy make sense. Even donations to be made during the course of a person’s life can impact an overall estate and therefore make sense to consider at the time a will or trust is developed or reviewed.

Forbes discusses two different options for charitable giving that people may wish to consider. One is the creation of a private foundation. This is essentially a standalone trust or corporation with a tax-exempt status. It can be created by an individual or a larger pool of family members. A foundation does require a relatively high level of recordkeeping but also provides a high level of control over what the money can be used for. This approach is generally best for people wishing to donate very large sums of money.

For donors with smaller charitable budgets, a donor-advised fund may provide the right fit. This is an account into which money is deposited by donors and then invested until donation to a specific charity is identified. All deposits are tax deductible and donors can select the investments utilized and the charities that receive funds. Stocks are also able to be involved in a donor-advised fund.

This information is not intended to provide legal advice but general information about various options for planned giving when estate planning in Florida.

Luis E. Barreto