How to obtain tax relief

After a lifetime of paying taxes, the government taxes you yet again at death. The Economic Growth and Tax Relief Reconciliation Act of 2001 changes some of the federal estate tax and gift-tax rules, but many of the most significant changes will not take affect for years.

Even with the increased exemption and reduced tax rates afforded over time by the Economic Growth and Tax Relief Reconciliation Act, much of your hard-earned money may go to the government without proper planning. The government has no particular interest in protecting your loved ones or furthering your values and beliefs.

However, the tax code provides ways to reduce your estate taxes.

One way to cut estate taxes is to consider including gifts to tax-exempt charities in your Will. Charitable gifts made through your Will are completely free of estate tax. By making a charitable gift, you also help support the causes you believe in after you are gone.

There are no limits on the amount you can bequeath to charity. Some individuals leave as little as $50 in their Will, while others leave their entire estates; all free of estate taxes.

If you wish to provide for a favorite tax-exempt charity in your Will, you must do one of the following:

  1. Specify the amount of money or asset (such as a piece of property) you wish to donate to each organization.

  2. Designate a percentage of your estate you want distributed to each charity.

  3. Instruct that any remaining residue of your estate be distributed to your favorite charities after distributions are first made to family, friends and other obligations.

  4. You may also name a charity as a contingent beneficiary if someone named in your Will is no longer living.

Providing for a charity in your will is easy.

You may also designate a favorite charity as the beneficiary of assets that often pass outside of a will, such as IRAs, qualified retirement plans, life insurance, or assets held in trust. Contact your attorney or plan representatives about how to make these beneficiary designations.
 

For More Information

If you think we can be of any assistance with regard to your estate plan, or should you wish to provide for Greenpeace in your will or trust, please do not hesitate to call our Gift Planning Office at (800) 328-0678.

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