If you’ve ever wondered how to maximize the impact of your charitable donations while also enjoying the tax benefits of doing so, this blog post might be helpful to you.  In this article, I will break down seven effective charitable planning strategies in plain English, so you can feel more confident discussing this topic with your estate planning attorney.

1. Annual Giving:  The Classic Starting Point

Annual giving is as straightforward as it sounds: donating cash or assets to qualified charities each year. But here’s where the strategy kicks in.

• Cash donations are deductible up to 60% of your adjusted gross income (AGI).
• Donating appreciated assets (like stocks or real estate that have gone up in value) is deductible up to 30% of your AGI.
• If your donation exceeds those limits, you can carry forward the extra deductions for up to five years.

A Tip on Timing:

Since the standard deduction increased significantly under the 2017 tax law (and may decrease again in 2026), many people “bunch” charitable gifts—combining a few years' worth of giving into a single year—to itemize and get a bigger tax break.

2. Qualified Charitable Distributions (QCDs):  Tax-Savvy Giving from Your IRA

If you’re 70½ or older, QCDs are a powerful tool. You can transfer up to $108,000 (2025 limit, adjusted for inflation) directly from your IRA to a charity—and it counts toward your required minimum distribution (RMD) but doesn’t get taxed as income.

Here’s why that’s huge:

• You lower your taxable income.
• You still fulfill your RMD obligations.
• You support causes you care about.

Just remember: QCDs can't go to donor-advised funds or private foundations, and there’s no charitable deduction since the money isn’t counted as income in the first place.

Bonus: You can also make a one-time $54,000 QCD to certain gift annuities or charitable remainder trusts, but it must be done in one year, and only you and your spouse can receive income from it.

3. Charitable Gift Annuities:  Giving While Receiving Income

This is a win-win strategy if you're charitably inclined but still want steady income. Here's how it works:

• You donate cash, stock, or other assets to a charitable organization like a university for example.
• The charity gives you (and possibly your spouse) a fixed income for life.
• You get an immediate tax deduction and possibly reduce capital gains taxes if you donate appreciated assets.

Think of it like buying a lifetime pension from a charity—you give them a gift, and they thank you with a reliable paycheck for life.

4. Charitable Remainder Trusts (CRTs):  Income Now, Charity Later

A Charitable Remainder Trust lets you donate assets but keep an income stream for yourself (or others) during your lifetime or for a fixed amount of time, up to 20 years. After that, whatever remains in the trust goes to charity.

You’ll love CRTs if:

• You want to sell a highly appreciated asset (like a rental property or stock) without paying a huge capital gains tax all at once.
• You want to support a cause but also need income.
• You like the idea of a big tax deduction up front.

There are several types of CRTs, each with its own twist:

CRAT (Charitable Remainder Annuity Trust)

• Pays a fixed dollar amount annually.
• No extra contributions allowed after it starts.
• Great for predictability.

CRUT (Charitable Remainder Unitrust)

• Pays a fixed percentage of the trust’s value each year, recalculated annually.
• Payments go up or down based on investment performance.
• You can add more to the trust over time.

NICRUT & NIMCRUT

• NICRUT's adjust payments based on actual net income earned in the trust.
• NIMCRUT's let you "make up" missed income in future years.
• Often used when trusts hold hard-to-sell or non-income-producing assets.

Flip CRUT

•    Starts like a NICRUT, but “flips” to a standard CRUT when a triggering event occurs (like selling a property).

5. Charitable Lead Trusts (CLTs):  Charity First, Family Later

Where CRTs benefit you first and charity later, CLTs do the opposite.

With a CLT:

• The charity gets annual payments for a set number of years first.
• After that, whatever’s left in the trust goes to your family or other heirs.

Why is this strategy beneficial?

• You can pass more to your heirs while potentially reducing estate taxes.
• You still support your favorite causes.

CLTs can be structured in creative ways:

• CLAT (Charitable Lead Annuity Trust):  Pays a fixed annual amount to charity.
• CLUT (Charitable Lead Unitrust):  Pays a percentage of the trust’s assets each year.
• Zeroed-Out CLATs:  Designed to eliminate estate taxes entirely.
• Step or Shark-Fin CLATs:  Start with low payments to charity that increase over time, allowing assets to grow faster.

6. Donor-Advised Funds (DAFs): Flexible, Low-Maintenance Giving

A Donor-Advised Fund is like a charitable investment account.

• You donate cash or appreciated assets to the fund.
• You get a tax deduction in the year of the donation.
• The money grows tax-free and can be distributed to charities over time.

There’s no required annual payout, and you retain advisory privileges—meaning you recommend where and when the money goes. DAFs are perfect if you want to:

• Time your tax deduction but decide later which charities to support.
• Teach your children about philanthropy.
• Avoid the administrative hassle of running your own foundation.

7. Family Foundations:  A Legacy That Lives On

If your family is serious about philanthropy and wants control over how money is used for generations, a private foundation may be the answer.

• The foundation gets funded by your family’s assets.
• You (and your family) control the board, investment strategies, and who receives grants.
• Can operate programs, fund public charities, or provide direct aid.

There are two types:

• Operating foundations run their own programs.
•  Non-operating foundations give grants to others.

Private foundations must distribute at least 5% of their assets each year and follow strict IRS rules—but they’re powerful tools for families committed to long-term giving.

To Summarize

There is a common misconception that Charitable planning is just for the ultra-wealthy.  Fortunately, that is not true.  Anyone who wants to give with intention, make a difference, and get the most out of the tax system legally and ethically can formulate a charitable giving strategy.

Whether you’re donating $5,000 or $5 million, the right strategy can help you support your favorite causes, reduce your tax burden, and even leave more for your loved ones.

Working with a financial planner, a tax professional, and an estate planning attorney can help you choose the best path for your goals, your assets, and your timeline.  Hopefully now, you have a clear, plain-English roadmap to start asking the right questions and make smart, impactful charitable giving choices.

________________________________

This content is developed from sources believed to be providing accurate information, and provided by Attune Financial Planning. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Durable Power of Attorney for Finances and Healthcare Directives:  What Are They?

A Durable Power of Attorney for finances allows you to appoint someone, known as an agent or attorney-in-fact, to manage your financial affairs if you become incapacitated. This can include tasks like paying bills, managing investments, and handling other financial responsibilities. On the other hand, a healthcare directive, also known as a medical power of attorney or advance healthcare directive, enables you to designate someone to make medical decisions on your behalf when you are unable to do so yourself.

These legal documents are critical in ensuring that your wishes are respected, your financial affairs are handled appropriately, and your medical decisions are made with proper care. However, the effectiveness of these tools largely depends on the individuals you choose to act as your agents.

Choosing a Single Agent: Pros and Cons

One common approach is to appoint a single agent to act on your behalf.  For married couples, this person would most commonly be your spouse.  If you are single, your agent could be a partner, relative, friend, or other trusted individual. 

This option has several advantages:

•    Simplified Decision-Making: With only one person responsible for making decisions, the process is straightforward. There is no need for consultation or consensus, which can be especially beneficial in time-sensitive situations.

•    Avoiding Conflicts: Appointing a single agent eliminates the risk of disagreements between multiple agents. This is particularly important in healthcare situations where prompt decisions are crucial.

•    Clarity and Accountability: A single agent is solely responsible for executing your wishes. This clarity can prevent confusion and ensure that your directives are followed precisely as intended.

However, there are also potential disadvantages to appointing just one agent:

•    Risk of Being Unavailable: If the appointed agent is unavailable, incapacitated, unable, or unwilling to act, your affairs could be left up in the air with no one to make decisions on your behalf. This could lead to delays in critical financial or medical decisions.

•    Increased Burden: The responsibility of managing all aspects of your finances or healthcare decisions can be daunting and overwhelming for a single person to handle, especially if your affairs are complex.

An Alternative Approach:  Co-Agents or Successor Agents

Given these issues, people commonly opt for an alternative approach: appointing co-agents or naming successor agents.

Appointing Co-Agents:  Balancing Responsibility

Appointing two or more agents to act jointly rather than a single person has its own set of benefits:

•    Shared Responsibility:  With multiple agents, the responsibility is distributed, potentially reducing the burden on each person. This can be particularly useful in situations involving complex financial matters or challenging healthcare decisions.

•    Checks and Balances: Co-agents can provide a system of checks and balances. If one agent is unsure about a decision, the other(s) can offer guidance or act as a safeguard against poor choices.

•    Continuity of Decision-Making:  If one agent is temporarily unavailable, the other(s) can continue to act, ensuring that there are no gaps in managing your affairs.

However, appointing co-agents also introduces potential challenges:

•    Potential for Disagreement:  When multiple agents must agree on decisions, there is a risk of conflict. Disagreements can delay important actions, which may be particularly problematic in urgent healthcare situations.

•    Logistical Complications:  If co-agents are required to act jointly, coordinating decisions can become cumbersome, especially if they live in different locations. This can slow down the process and create additional stress.

•    Confusion in Roles:  Without clear guidelines and instructions, co-agents might struggle with understanding their roles and responsibilities, resulting in possible misunderstanding or overlapping of duties.

For these reasons, it is essential to carefully consider the relationship dynamics  between the individuals you are considering as co-agents and to provide them with clear instructions in your legal documents.

Successor Agents: Ensuring Continuity

Another approach is to appoint a primary agent with one or more successor agents. A successor agent steps in only if the primary agent is unable or unwilling to act. This structure offers several advantages:

•    Continuous Coverage: Successor agents ensure that there is always someone available to manage your affairs, even if the primary agent cannot do so. This can prevent delays in crucial decision-making.

•    Simplified Decision-Making: With only one agent acting at a time, you avoid the potential for conflict or logistical issues that can arise with co-agents.

•    Reduced Burden on Primary Agent: The primary agent knows that if they are unable to fulfill their duties, a successor is in place to take over, which can alleviate some of the pressure.

However, it is important to ensure that the primary and successor agents are aware of their roles and the circumstances under which the successor will step in. Clear communication and legal documentation are key to avoiding confusion.

Personal Considerations in Selecting Agents

Beyond the structural considerations of single agents, co-agents, or successor agents, there are personal factors to consider:

•    Trust and Reliability: The most crucial factor in selecting an agent is trust. Your agent(s) will have significant power over your finances and healthcare, so it is essential to choose someone who is reliable, trustworthy, and has your best interests at heart.

•    Proximity and Availability: An agent who lives close to you or is easily reachable may be in a better position to act quickly when needed. Availability is particularly important for healthcare decisions that might require immediate attention.

•    Family Dynamics: Consider how your choices might impact family relationships. Choosing one child over another as an agent, for instance, could lead to feelings of resentment. If you choose multiple agents, ensure they can work together harmoniously.

•    Complexity of Affairs: If your financial or medical situation is particularly complex, you might need an agent with specific skills or knowledge, or even consider appointing a professional fiduciary.

•    Potential Conflicts of Interest if a child is chosen as your agent:

• Financial Conflicts:  A child who stands to inherit from your estate might face conflicts of interest, particularly when making decisions that could affect the value of the estate. For example, they might be tempted (consciously or unconsciously) to make decisions that benefit them financially, rather than strictly following your wishes.

• Healthcare Decisions: In healthcare matters, a conflict of interest could arise if your child must make decisions about expensive treatments that could deplete the estate. They might feel torn between prolonging your life and preserving assets.

In Summary:  Choose Wisely

Deciding on the number of agents for your Durable Power of Attorney for finances and healthcare directive is a crucial step in your estate planning process. Whether you choose a single agent, co-agents, or a combination of primary and successor agents, it is important to carefully weigh the pros and cons of each approach. By considering the nature of your affairs, the capabilities of your potential agents, and the dynamics of your family, you can make an informed decision that ensures your wishes are respected and your affairs are managed smoothly.  

Consult with your estate planning attorney to draft these vital documents for you if you do not have them in place.  If you have these documents in place, review the agents listed in these documents regularly to ensure they are still appropriate.  If not, discuss with your estate planning attorney to have your agents updated.

_________________________________

Estate Plan Basics

An estate plan is the management and organization of your assets should you pass away. It also includes documentation determining who can make medical and financial decisions should you become incapacitated.

Most people think that estate planning just includes a will. While a will is a beneficial document, other documents should be included in your estate plan.

• A will (also called a last will and testament) specifies how you want your estate to be distributed. Besides dividing up your assets, a will also appoints guardianship for minor children. This last item is essential to designate; you don’t want a court determining who your children should live with in the event of your death. If your estate includes a revocable trust, a will is still needed. Called a “pour-over will,” the goal of this document is to cover any assets that may have not made it over to the trust.¹
• An advanced medical directive (medical power of attorney) establishes who can make medical decisions for you should you become unable to do so. A medical power of attorney also allows you to designate a conservator should you become mentally incapacitated.¹
• A living will details to your physicians what type of care you want to receive at the end of your life when you face a terminal illness or are in a vegetative state. Do not resuscitate (DNR) and do not intubate orders are listed here. While a last will and testament is designed to specify your wishes upon your death, a living will determines what happens to you while you’re still alive.¹
• A financial power of attorney, much like a medical power of attorney, appoints someone to handle your financial affairs should you become unable to do so. There are two different types of financial powers of attorney: a durable power of attorney and a springing power of attorney. A durable power of attorney goes into effect as soon as the documents are signed, whereas a springing power of attorney only goes into effect if you become mentally incapacitated.¹
• A revocable living trust is a more detailed document that details not just what happens after you’re gone or incapacitated but what happens while you’re alive, too. At its core, a revocable trust is a vehicle to hold your assets; meaning that until assets are moved over, it’s essentially just an empty vessel. If you have a more complicated estate, a revocable living trust can help manage a variety of assets and beneficiaries. As the trustee, you’ll still have control over your assets while they’re in the revocable living trust, and assets held in the trust will avoid probate after your death.^1,2

Estate plans are a necessary part of life, albeit one that no one really wants to think about. But having an estate plan is one of the kindest things you can do for your loved ones. You’ll gain peace of mind knowing that your family is taken care of, no matter what life throws at you.

What Is a Digital Safe Deposit Box?

A digital safe deposit box is a virtual, secure archive in which you can place digital copies of anything you want. Unlike the physical constraints of a bank box, most digital safe deposit boxes offer unlimited storage. This allows users to store anything from treasured photos to personal documents.

Advantages of a Digital Safe Deposit Box

One important advantage of using a digital box to store your important documents is the ability to control who has access to certain items within the box - or access to the box altogether. In the event your loved ones need access to your information, a digital safe deposit box can provide ease and accessibility. This can help eliminate the need to frantically search through a loved one’s home or plead with a bank to gain access to what you need.

Limitations of a Digital Safe Deposit Box

As one could imagine, there is a certain limitation to only storing documents digitally. While you could keep scans of original artwork or photos of your favorite memorabilia, you, of course, can not keep the original item in virtual storage. In addition, some legal documents, such as a passport, are only valid in their original form. Therefore, it’s important to not rid yourself of a physical safe deposit box altogether, but rather use a digital version to help streamline and organize what you can.

Remember, however, that you could use a digital box to document the physical locations of important items - such as your passport, will, bonds, etc. 

What to Store in a Digital Safe Deposit Box

What you choose to keep in your digital safe deposit box is a personal choice, although it’s typically used for important health and financial documents, password storage and sentimental items.

You may want to consider storing items including:

• Digital copy of your will
• Photocopy of your passport
• Insurance policies
• Health insurance policies, provider names and account information
• Usernames and passwords for online accounts
• Financial information (contact information for your financial advisor, credit card account info, bank account info, etc.)
• Drivers license number
• Social Security number
• List of locations for physical items (will, passport, etc.)

As part of staying proactive and prepared for the future, it’s important to take the time needed now to organize and identify what you or your loved ones will want access to. Utilize the unlimited storage space of a digital safe deposit box to provide a thorough roadmap for loved ones and preserve precious memories.

Roadblock #1: Discussing Death

Talking about one’s own mortality isn’t a particularly fun thing to do, especially in the company of a partner, spouse, children or grandchildren. But the reality is, not discussing it doesn’t keep it from happening. Instead of trying to sit down and talking about your future death with your family, try to use gentler terms like “when I’m gone” or “once you’re on your own.” Finding other, softer ways to frame it can help you and your loved ones move past the morbidity and on to thinking about the next steps and how to move forward efficiently.

Roadblock #2: Assessing Assets

In order to craft a successful estate plan, you need to account for every asset. And if you’re well-established and have lived a long life, you’ve likely accumulated quite an estate. But it can be overwhelming to think about assessing each and every account, property, car, painting, piece of jewelry and more. So overwhelming, in fact, that you find yourself putting it off altogether.

If you’re able, work together with your spouse or a loved one to start two lists - financial and physical. As you think of things you own, start jotting them down into their appropriate category. Once you have a fair amount listed out, you can begin working on the next set of details - breaking down the categories into smaller, more specific subsections, listing out the price or value and thinking about who you’d like to have what. Move through this process one small step at a time to help reduce the feeling of being overwhelmed while still making progress toward your estate plan.

Roadblock #3: Working With a Lawyer

This is one roadblock you may not have even realized you had - working together with a lawyer. If you’ve worked with a trusted attorney in the past, this may not be an issue for you. But for those who are in need of working with a lawyer for the first time, the search can be intimidating, nerve-wracking and confusing. But estate plans can be complex, and you need to make sure you’re drafting one up that offers tax-benefits for your loved ones and protection over the things you love.

If you’re apprehensive about hiring an attorney, asking friends and family or other trusted professionals for referrals may be a reassuring step in the right direction. And if you find one who isn’t listening, speaking over your head or you just have a bad feeling about them, don’t be scared to pick up your things and go. Developing an estate plan that addresses your needs and concerns is far too important to settle with the wrong professional.

Roadblock #4: Deciding Who Gets What

Uncomfortable truths can start to surface when you begin thinking about who should be left with what. Even happy parents and kids with no family issues need to be realistic about the future - what’s the likelihood the widow will remarry, what happens if a child dies unexpectedly, what if there’s a divorce in the family, etc. And things can get even harder to discuss for families who may be struggling. Do you leave the child whose battling addiction a large sum of money, or do you give the majority of your wealth to your more stable child? If things have gotten rocky between you and a loved one, do you disinherit them altogether? There’s no shortage of emotional decisions to be made around who should get what, but you can’t let that stop you from pushing forward in determining who will receive what in the event of your passing - or else you may lose control of who receives what altogether.

Roadblock #5: Paying For an Estate Plan

Establishing a successful estate plan doesn’t come cheap. But if that’s keeping you from pushing forward in creating one, it may help to think of it as establishing a legacy for your family and leaving a gift to your beneficiaries. Taking the time to work with a professional now can help save your family members from costly tax obligations or other fees associated with dividing up your property. 

Discussing an estate plan is no walk in the park, but it may be easier to address when you think about what it truly is - the gift of passing on a legacy in a tax-efficient manner to your loved ones. Take your time working through the emotional roadblocks discussed above, and keep moving forward in developing a successful estate plan now to protect your family in the future.

When a loved one passes, it is customary for someone, usually a family member or close friend, to deliver a eulogy at the funeral.  A eulogy is a speech normally 10 to 20 minutes in length, given to honor and praise a person’s life.

I was given this special honor.  At first, I was nervous as I did not even know where to begin to adequately describe the life of my father; especially a life that has spanned almost a century.  Being the youngest in our family, I really only knew my father later in his life.  I did not know much about his childhood and early life.  As with a lot of people of my father’s generation, he did not talk much about his life or struggles.

So, I started my research of my father’s life by going through his files.  To my surprise, I found that he had taken the time to hand write his own biography over 25 years ago!  I think he had done this as part of the Will he and my late mother had prepared at the time.  He chronicled his life from his early years all the way until his retirement.  I am not very surprised he did this, as my father was a very organized person.  Nevertheless, I was impressed by his thoroughness as he did not divulge much about his life verbally.   His written personal biography helped me tremendously to fill in the gaps in my father’s life that I did not previously know about.  I came away from the experience of writing and delivering my father’s eulogy prouder than ever of him.  I felt I was able to say goodbye to him with the dignity and respect that he deserved.

I learned a number of important lessons from this special experience that I would like to share with you:

1.    Talk to Your Children Often.  This might seem obvious as you probably speak with your kids all the time.  What I mean is having regular conversations with them about you and your family history.  A great time to do this is over the dinner table.  Casually bring up a topic from your past and talk about it while you are eating and invite them to ask questions.  It is important that they know about your life and how your family came to be where it is today.   This knowledge will bring the family closer and give them a sense of pride in themselves and their family.

2.    Collect photographs.  In our digital world, it is now easier than ever to store all of the pictures we take in our daily lives.  There are numerous cloud storage devices available through companies like Google, Amazon, and Apple that you can use.  I use Amazon Photos and what's great about this service is that pictures that I take on my smartphone is automatically uploaded to their service.  Plus, I don’t have to worry about taking up storage space on my phone.  It is also very easy to create and share albums with Amazon Photos. But how about those pictures that we took from our old cameras?  Gather them up, put them in albums and share them with your kids.  Let them know when you took those old pictures and why.  Sharing pictures is a great way to talk to your kids about your life history.

3.    Make a Family Tree.  This is a fun project you can do with your kids and the rest of your family members.  There are quite a number of software programs available to help you do this.  We created our own family tree and it was really fascinating to see how big our family really was.  A family tree helps in understanding where you came from and can give you and your kids a further sense of pride in your family.

4.    Write Your Biography.   Your biography can be as simple as providing a chronology of important dates and events, to a detailed history of your life, values, and beliefs.  This document can also be referred to as an Ethical Will. Just ask yourself what you want your family to know about you and how you want to be remembered.  As I mentioned above, my father's biography was a tremendous help to me and I learned so much about him that I did not know before.

Losing a loved one is never an easy time for the family.   However, you can leave a trail that will allow the rich and lasting memory of who you are and how you lived to go on beyond your own lifetime.

If you have parents who are still alive, talk to them now.  Take some time to learn about their lives, gather old pictures, and encourage them to write their own biographies.  By doing this, their memories can live on as well.

From listening to the friends and family who spoke about him, I found out why.   Like many men in his generation, he served in World War II.  After the war, he worked as an accountant for the Federal Government until his retirement. These two achievements alone qualify as a successful life in my opinion. However, his real success came from living a humble, happy and fulfilled life.

First of all, family came first to my Uncle.  His identity was not defined by a lofty career but by his role as a wonderful  friend, husband and father.  There was nothing he enjoyed more than having a roomful of kids and grandchildren at his house.   He had six children and they all loved and adored their father. They described him as someone who was soft spoken, slow to anger, and quick to forgive.  He was also a devoted and loving husband to their mother.  His kids said that they never saw my Uncle argue with his wife – at least not in front of them.  Not even once in their 60 plus years of marriage.  

Secondly, he found his passions in life and pursued them relentlessly.   While I personally remember him playing chess, I did not know until his memorial service that he was close  to becoming a Chess Grandmaster.  He was also an avid gardener and took great joy in cultivating his garden.  He loved singing Karaoke with his family on weekends and ballroom dancing.  My Uncle even took on a second career as a black jack dealer.  While not a gambler himself, he really enjoyed this casino game.

Thirdly, and most importantly in my opinion, my uncle discovered his own unique secret to happiness: humility, kindness and charity.    From what the many people attested to at his memorial service, his kindness really touched their lives.  From his family, neighbors, friends, old- coworkers, to people he met in passing, he always had a kind word to say.   My Uncle truly listened to the other person, treated them with respect, and cared about what they had to say.  He never used a personal encounter as an opportunity to brag about himself.

I learned a great lesson about how to live one’s life from attending my Uncle’s memorial service and funeral: while money is necessary to live, it is not the reason for why we live.  My Uncle was not rich in the traditional sense but he had a rich life nevertheless.   His life was an example that real wealth is attained not by how much money we accumulate but living life to the fullest and genuinely give back to others.

The question we often ask ourselves is “what should I do with my life?”   Maybe the better question should be, “How do I want to be remembered?”  and work backwards from there.  If we can do this, then perhaps we too can be lucky enough to have a standing room only crowd at our Memorial service where people have nothing but fond words to say about us.