Gift Planning for Every Age
Gift planning – also called “planned giving” – is a great way for individuals to schedule future financial gifts for their loved ones, nonprofits, educational
institutions and other organizations. While many give for emotional reasons, gift planning can also provide the giver with financial benefits such as reduced
tax rates and a guaranteed source of income.
No matter where you are in your life or what your financial situation is, there is a gift planning strategy for you. The following slides will show
you which gift planning options are most appropriate during each part of your life.

Mid-Life:
40s-50s
In your 40s and 50s you may have appreciated
assets that have gained value over time, such as
stocks, that you wish to utilize. You may also be
planning more actively for retirement.
Fortunately, salaries are at their highest during
this period of your life – around $50,000 on
average.1
Take advantage of this extra income with
these planned gifts:
Life Insurance – You can name an irrevocable primary
beneficiary and grant them sole ownership of your policy so they
receive the full amount after your death, or you can split the
policy between multiple entities so each receives a percentage
of the policy.
Gift of Appreciated Securities – Securities are investments
like stocks, bonds and mutual funds that can increase in
monetary value over time. If you gift appreciated securities, you
do not owe capital gains tax and you can save money with
income tax deductions.

Later Life:
60s-70s
At this phase, you may have retired or reduced the
hours you work per week. You may benefit from a
steady, guaranteed source of income, especially if
you have medical and housing payments.
The following gift options ensure you receive a
constant stream of income when you need it most:
Charitable Gift Annuities – Make an up-front gift with cash,
securities or property in exchange for a fixed income and tax
deductions. When you pass away, the principal goes to the entity
designated to receive the gift.
Charitable Remainder Trusts – In a charitable remainder
unitrust (CRT), the giver receives income depending on the
fluctuating value of their trust and can add more money to the
trust at any time. In a charitable remainder annuity trust (CRAT),
the giver receives fixed income and cannot add more money. You
get income tax deductions, and the entire value of the trust goes
to your designated beneficiary once the trust expires.

Golden Years:
80s-90s
In their 80s and 90s, people are coping
with long-term care and housing payments. They
are making the final adjustments to their finances so
their money and assets go to the proper entities.
Real Estate – If you are downsizing or have multiple properties,
you can gift this property. This can be highly advantageous as
you can get a full market value income tax deduction and bypass
capital gains tax.
Charitable Lead Trust – If you haven’t already, start a
charitable lead trust. The money in the trust goes to charities
until your estate taxes are reduced. Once the trust expires, the
rest goes to your beneficiaries.
Re-Evaluating Previous Gifts – You want to make sure that all
established gifts have up-to-date beneficiaries and ensure all
legal documents are consistent with your wishes.

Get Help with Estate Planning from
The Law Offices of David L. Carrier, P.C.
As you can see, there are numerous gift planning options for those who wish to put their money to good use both during and after their life. However, the tax
benefits and results of each plan can be confusing without proper legal guidance.
Fortunately, the estate planning lawyers at The Law Offices of David L. Carrier, P.C. can help you determine which gift plan is best for your unique situation. We
have faithfully served more than 10,000 Michigan families over the past 35 years – a huge testament to our success.
To get started, call us at 616-361-8400 today for more information.

Sources
1
http://www.businessinsider.com/the-average-salary-for-americans-at-every-age-2017-4