• Revocable Living Trusts

• Wills

• Probate

• Special Needs Trusts

•  Trusts for Children

• Disability Planning

• Asset Protection

• Charitable Giving

• Business Planning

• Trust Administration

Charitable Giving

Attorneys William Root and David Resch, welcome you to contact the Dublin, Ohio, law firm of Resch and Root, LLC, to discuss your individual charitable giving and estate planning needs.

Those who create estate plans usually have a strong sense of family and community and are therefore inclined to make charitable gifts as a part of their overall estate plan.  Possible reasons for charitable giving include reducing one’s taxable estate and tax liability, conveying patronage to the community, and securing control over future estate distributions.

Gifting Methods

The simplest way to give to a charity is by making an outright gift.  Outright gifts can be made either during a person’s lifetime of at death, with the donor receiving tax benefits.  The availability and amount of those benefits depend on several factors, and the charitable gift must be properly structured to maximize the tax advantages.  Some of the factors to consider are:

• The type of property given (e.g., cash, stock, real estate, short-term or long-term)

• The nature of the charitable organization

• The value and tax basis of the gift

• The potential giver’s contribution base (adjusted gross income, without regard to net operating loss)

• The charitable deduction interplay between or among other charitable gifts made in the same year or “carried over” from prior tax years

Types Bequests

A direct bequest to a charitable organization can take several forms.  A cash bequest provides that your charity received a specific dollar amount.  You can also give tangible personal property such as a residence or a piece of artwork. 

A residuary bequest allows your charity to receive everything after estate expenses and specific bequests have been paid.  Furthermore, you can leave the remainder of a retirement plan to your charity. 

Alternatively, you might want to consider a contingency bequest, which would allow your charity to receive your assets, only in the event of the death of your other beneficiaries.  

Charitable Trusts

Gifts can also be made through the use charitable trusts upon your death.  Some of these trusts can benefit both a charity and the beneficiaries of your estate.  These types of trusts are commonly known as “split-interest trusts.”
Some examples of split-interest trusts include the following:

• Charitable remainder trusts: Designated beneficiaries receive the benefit of the assets within a charitable remainder trust while they are alive. Upon the death of the beneficiaries, the remaining assets in the trust are distributed to a designated charitable organization. A charitable remainder trust offers a significant estate tax deduction, gives a donor control over assets distributed to heirs, and provides a philanthropy opportunity when your loved ones are no longer capable of benefiting from the assets within the trust.

• Charitable lead trusts: A designated charitable organization receives the benefit of assets within the trust for a specific number of years. The remaining assets within the trust are then distributed to designated beneficiaries. A charitable lead trust offers a significant tax deduction, enhances philanthropy opportunity until your beneficiaries (usually grandchildren) are responsible enough to manage the assets within the trust, and affords control over distribution of inheritance to grandchildren or other loved ones rather than to wealthy children, thereby also reducing their taxable estate.

Foundations, Supporting Organizations, and Donor-Advised Funds
Many clients of Resch and Root have chosen to set up private foundations, supporting organizations, or donor-advised funds to accomplish their charitable objectives.  Many clients using these methods share common philosophy:

“I’ve accumulated more than my family and I need.  My children think they need more, but it’s clear to me that I’ve got them pretty well provided for, and their living standards are already higher than mine were for most of my life.  When my spouse and I are gone, I want to leave something behind that will benefit the community and the future.  In addition, I would like to keep my children – and grandchildren down the road – bound together by a common interest.  Finally, I want to have some control, personally, as long as I’m around and through my family’s involvement after my death.”

To discuss your specific needs, call 1-614-760-1801

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Located in Dublin, Ohio, Resch and Root provides sophisticated legal counsel to clients in central Ohio, including Dublin, Upper Arlington, Westerville, Hilliard, Worthington, Powell, New Albany, Columbus, Cincinnati, Dayton, Cleveland, Youngstown, Akron, Newark, Lancaster, Delaware, Marysville, Circleville, Pataskala, London, Portsmouth, Zanesville, Chillicothe, Athens, Marietta, Jackson, Waverly City, and Gallipolis.