Can an estate plan provide for one's family and friends and still benefit charity in the future?
The passage of time proved no obstacle to a late philanthropist who was determined to give to charity. Leave A Legacy, in Southeast Michigan, announced that it had received $13 million from Dick E. Morand, who died in Detroit, Michigan in 1977. The funds will benefit five non-profit organizations.
Morand's wife had passed away in 1976 and the two were childless. The founder and owner of D.E. Machinery Company, he had placed his assets in a charitable remainder annuity trust (CRAT), which provided payments to beneficiaries he had named, with the remainder to go to charity when they were deceased. In 2013, the two remaining beneficiaries of the trust passed away. That meant the assets could be distributed to charity. Five organizations received $2.7 million each.
The delayed gifts is an object lesson not only in generosity but also in how one can preserve one's wealth, leave money to friends and loved ones, and still give to charity. Charitable remainder trusts enable you to generate a stream of income from assets, enjoy tax advantages, and specify the organizations that will ultimately receive your wealth. Because of the tax treatment of these trusts, in addition to accomplishing worthy long-term goals, you may also receive a generous current tax deduction.
A CRAT is one of a variety of such strategies that can help you benefit your family, a charity, or both. Options may include a charitable lead trust (CLAT) and a variety of other revocable and irrevocable lifetime trusts and testamentary trusts, depending on your goals and wishes.
Regardless of how much wealth you have now or expect to leave behind, the law firm of Byers & Goulding, PLC can help you draft an estate plan in a way that meets your family and charitable giving goals. From simple wills and long-term planning to complex trusts, we provide the sound, trusted advice on how to do the most good for your loved ones and the organizations you believe in. For a consultation, call our experienced Michigan estate planning attorneys (248) 301-1511 today.