Maximize Your Impact
Did You Know? Did you know that about one-fifth of the U.S. population are grandparents? It’s true! Check out more on this and other interesting facts surrounding just how special grandparents are. • Today, there are more than 70 million grandparents in the U.S., and over 70% of middle-aged people and the elderly will become grandparents! • Studies show that children who have a close relationship with their grandparents are happier and more emotionally resilient.
Charitable Giving and Tax Benefits for Californians
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In the U.S., grandparents spend over $179 billion annually on their grandchildren, from gifts to education.
Charitable giving is an honorable undertaking that many Californians commit to in their lifetimes. Providing necessary funding for critical causes in our communities and around the world allows for the betterment of our world, which is precisely why there are tax benefits to such a commitment. Structuring your charitable contributions in a way that allows you to take advantage of available charitable tax deductions leaves more wealth to you and your loved ones for additional giving or to take care of your own needs. Tying your charitable lifestyle to your estate plan through a revocable living trust is one option, but there are specific mechanisms that must be in place to take full advantage of those deductions that could save you and your loved ones thousands of dollars. DESIGNATING INCOME OF A REVOCABLE LIVING TRUST FOR CHARITABLE CONTRIBUTIONS When you establish a revocable living trust with the intention of using income generated by assets held within the trust, you must expressly say in trust documents that all funds intended for charitable purposes are to come from income generated inside the trust. You can’t take funds out of accounts or assets held within the trust and transfer those funds. It must be the income generated by those assets. If the trust’s assets do not generate income, then any charitable contributions made by the trust will not be eligible for the charitable deduction. Assets that frequently generate income within a trust include rental properties, California real estate holdings, or even business interests with income owed to the trust. CHARITABLE GIVING IN LIFE AND DEATH WITH DAHL LAW GROUP At Dahl Law Group, we take pride in helping our Northern and Southern California clients establish estate plans that fit their needs and biggest desires. Your plan should support your lifestyle today while also leaving behind a legacy of your choosing. For individuals who wish to have an estate plan that works in lockstep with lifelong charitable giving, contact Dahl Law Group today.
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