Estate planning isn’t just about passing on wealth—it’s about leaving a legacy.
For many families, that means supporting the causes they care about, whether it’s their church, a local nonprofit, or a national charity. Strategic charitable giving can reduce your estate tax burden while helping you pass on values—not just assets. And with Connecticut’s estate tax exemption set at $13.61 million in 2024 (and scheduled to drop in 2026), it’s more important than ever to plan ahead.
The Tax Benefit of Charitable Giving
When you donate to a qualified charity, that gift is excluded from your taxable estate. That means less of your money goes to taxes—and more goes to your family and your community.
In short: You can give generously and reduce your tax exposure. It’s a win-win.
Three Giving Strategies That Work
There’s no one-size-fits-all approach to philanthropy. The best option depends on your goals, your timeline, and how much control you want.
- Donor-Advised Funds (DAFs)
Think of this as a “charity savings account.” You contribute now, claim the tax deduction immediately, and decide later which nonprofit will receive the funds. It’s fast, flexible, and doesn’t require setting up a foundation.
Why it works: Great for families who want tax benefits now and time to consider their giving strategy later.
- Charitable Remainder Trusts (CRTs)
A CRT allows you to donate assets into a trust and receive income from it for a set number of years—or for life. After that, the remaining funds go to a charity of your choice.
Why it works: Combines income planning and charitable impact, while reducing your taxable estate.
- Private Family Foundations
These take more effort but give you total control. Your family sets up and runs the foundation, deciding which causes to support and how funds are distributed.
Why it works: Ideal for high-net-worth families who want to involve future generations in organized, ongoing philanthropy.
Legacy Over Wealth: What Your Plan Says About You
Giving isn’t just about cutting a tax bill. It’s a powerful statement about what matters to you.
When your estate plan includes charitable giving, your children and grandchildren see those values in action. You’re not just leaving them money—you’re teaching them to care, to serve, and to give back.
And when you involve them in those decisions now—choosing charities, setting up a donor-advised fund, attending board meetings for your family foundation—they become active participants in the legacy you’re creating.
Plan with Intention. Give with Confidence.
If you’re thinking about incorporating charitable giving into your estate plan, it pays to start early. Many strategies (like Medicaid planning or CRTs) require advance timing to work properly.
At the Law Offices of Charles L. Kurmay, we help Connecticut families design estate plans that reflect their values, minimize taxes, and make a lasting impact. From simple charitable bequests to advanced trusts and foundations, we’ll help you build a plan that gives back for generations.
📞 Ready to turn your values into a legacy?
Call us at (203) 380‑1743 or visit us at one of our offices in Milford, Madison, or Westport to schedule a consultation.
