Give to Others and Your Family

You can establish your foundation during your lifetime or it can be set up after you die. A small percentage of the trust’s assets would be distributed to charity each year. You can name whomever you wish to run the foundation, including your children, and the foundation can pay them a reasonable salary. You can be very specific about which charities you want to support or you can leave that up to the trustees of the foundation, in accordance with IRS guidelines.

Your Foundation’s Tax Benefits

Our experienced estate planning attorney will discuss with you about the tax benefits of setting up your own foundation as described below:

1. First and foremost, you’ll be able to save on estate, capital gains, and income taxes annually.

2. Second, the assets you give to the foundation will be removed from your taxable estate. If you give your entire estate to the foundation or the entire amount over the estate tax exemption, your estate will pay no estate taxes.

3. Thirdly, is that there will be no capital gains tax when the assets are sold by the foundation. It’s a great situation for appreciated assets.

4. Finally, if you donate publicly traded securities to a private foundation, you can receive a charitable income tax deduction for their full fair market value, up to 30% of your adjusted gross income. The deduction is less than the 50% limit for standard charitable contributions because this is a private charitable foundation.

Tax Benefits Of Your Foundation’s 

As our knowledgeable estate planning lawyer will tell you, tax benefits of setting up your own foundation can be substantial. These are the 4 benefits:

1. For one, you’ll be able to save on estate, capital gains, and income taxes.
2. Second, the assets you give to the foundation will be removed from your taxable estate. If you give your entire estate to the foundation or the entire amount over the estate tax exemption, your estate will pay no estate taxes.
3. Thirdly, is that there will be no capital gains tax when the assets are sold by the foundation. It’s a great situation for appreciated assets.
4. Last and final, if you donate publicly traded securities to a private foundation, you can receive a charitable income tax deduction for their full fair market value, up to 30% of your adjusted gross income. The deduction is less than the 50% limit for standard charitable contributions because this is a private charitable foundation.