The Law Offices of Neeli Shah, LLC
Purposeful, Practical, Personable


Charitable Planning

Charitable Gift Planning

FOR DONORS: Leave Your Legacy: Charitable Giving and Creating Charitable Gifts

“Social capital” is essentially money or other assets which will be used for activities which benefit either the government or society. When you pay taxes, you are involuntarily creating social capital, which will be spent as the government decides. With proper estate planning, you can reduce or eliminate wealth transfer taxes such as the estate, gift, and generation skipping transfer taxes. However, to the extent needed or desired, you can also voluntarily create social capital, by making transfers which will be used by non-governmental organizations for activities or programs which benefit society – i.e., charities. By making transfers to charities, you (or your designees) can decide which programs should be funded, and what social benefits you wish to provide. Proper planning can allow you to realize very favorable tax treatment for gifts made during your life and bequests made at your death under your Will, revocable living trust, or beneficiary designations. You can even use a number of charitable giving techniques to provide for your favorite charity or charities without a significant cost to either you or to your desired individual beneficiaries.

If you have an estate large enough that estate taxes may be owed after your death, you have the option to create potentially significant voluntary social capital (which you or your designees can control) through lifetime planning. If you fail to plan, you may end up creating potentially significant involuntary social capital (via estate taxes).

Even if your estate is not likely to be subject to estate tax, there are some charitable gift planning techniques which can allow you to turn a modest amount of your assets into a significant amount of social capital that either you or your designees can control.

We have extensive experience in helping their clients consider their options for creating voluntary social capital rather than involuntary social capital. We can help with transactions as simple as setting up a donor advised fund at a charity or considering a charitable gift annuity.  We can also help with more complicated transactions, such as charitable remainder trusts, charitable lead trusts, or creating your own family private foundations or even a public charity.

We also work with small and mid-sized non-profits to help them develop a strategic legacy plan to incorporate planned giving into their planning process so that they can involve donors who may not have the resources to give a monetary gift today, but still want to contribute to the non-profit in some significant way.  

If you are charitably inclined and interested in learning how charitable planning might fit into your life and your estate plan but don't know where to start, or are a non-profit who would like to incorporate planning giving into your strategic plan, please call us.