Throughout Southern California
View Our Practice Areas

Structured Charity Flexibility

6a017d3e6b2617970c0192ac81a397970d-320wi.jpgIt is indeed possible for a charitable gift annuity, a charitable remainder unitrust, a charitable remainder annuity trust, a life estate agreement or a pooled income fund to be converted into a current gift.

Timing can be everything when it comes to your charitable donations, both for you and for your charity of choice. Accordingly, you might want to build a little "flexibility" into your planning.

Have you considered expanding your generosity through a unique kind of charitable gift that is structured to actually "give back"? Examples include a charitable gift annuity, a charitable remainder trust, a charitable annuity trust, a pooled income fund or a life estate. As important as it is to understand these kinds of charitable gifts, there is good reason to know how and why they can be undone - and all for the sake of timing.

The subject of undoing structured gifts was illustrated by the Fred Hutchinson Cancer Research Center, itself no small target for charitable gifts of all kinds, in an article titled "Current Planned Gifts I - Gift Annuities and Unitrusts."

The original article is a fairly handy guide, especially if you are already familiar with these powerful planning tools. However, the guide also gets a bit technical, too.

The main takeaway is that a structured gift is not necessarily a structure set in stone. In fact, there are ways to speed up a gift of the "remainder" interest in a structured gift. In a certain tongue-in-cheek way the article explains from the point of view of the charity:

... presidents and CEOs of charities generally prefer current gifts as opposed to planned gifts. All presidents and CEOs have many goals and projects that require current funding. Therefore, the gift planner will be very favorably received if he or she understands the different methods for converting a planned gift into a current gift.

Then again, there are just as many reasons to speed up a structured gift when you are the giver.

For instance, if you are receiving a current income stream that you no longer need later in life, then you can accelerate the gift of the remainder interest generating that income and accelerate the charitable deduction to the current year. This deduction may be helpful if you are taking Required Minimum Distributions from your IRA.

Timing is everything, and knowing what can be undone gives you that much more flexibility.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Find Out The Difference That Experience And Expertise Makes

Get the peace of mind that you deserve. First, attend a seminar. This will entitle you to a free initial consultation and a discounted estate planning fee. To learn more about our services or sign up for a seminar, contact us online or call us at 866-402-1805. We have offices in Torrance, Orange, Newport Beach, Pasadena and Woodland Hills.

Questions? Contact Us.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Call Now For A Free Consultation: 866-402-1805
  • ${site.data.firmName}${SEMFirmNameAlt}
  • Main Office: Torrance

    Torrance Office
    990 West 190th Street
    Suite 500
    Torrance, CA 90502

    Toll Free: 866-402-1805
    Map & Directions

    Orange Office
    333 City Boulevard West
    17th Floor
    Orange, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Newport Beach Office
    5000 Birch Street
    Suite 8000
    Newport Beach, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Pasadena Office
    790 East Colorado Boulevard
    9th Floor
    Pasadena, CA 91101

    Toll Free: 866-402-1805
    Map & Directions

    Woodland Hills Office
    5850 Canoga Avenue
    4th Floor
    Woodland Hills, CA 91367

    Toll Free: 866-402-1805
    Map & Directions

    Office map
Check out The Law Firm of Kavesh, Minor & Otis on Yelp
Check out Kavesh Minor & Otis on Yelp
Check out The Law Firm of Kavesh, Minor & Otis - Orange on Yelp
Check out The Law Firm of Kavesh Minor & Otis - Pasadena on Yelp