Some general information about charitable gifting may be beneficial if you are considering the inclusion of philanthropy in your overall estate plan. Learn more about charitable gifting in this presentation.

1. HOW TO INCLUDE
CHARITABLE
GIFTING IN YOUR
ESTATE PLAN
ROBERT N. NASH
ILLINOIS ESTATE PLANNING ATTORNEY
“Some general information about charitable gifting may be
beneficial if you are considering the inclusion of philanthropy in
your overall estate plan.”

2. How to Include Charitable Gifting in Your Estate Plan www.nashbeanford.com
2
Your comprehensive estate plan offers you
the ability to do much more than simply
decide who will receive your assets when
you die. If you so choose, your estate plan
can become part of the legacy you leave
behind. That legacy, for many, includes
charitable gifting both during their lifetime
and after death. If you are one of those people, incorporating philanthropy into
your estate plan is important. Because of the numerous options available for
charitable gifting in your estate plan it is always best to consult with an Illinois
estate planning attorney before deciding on a course of action; however, some
general information about charitable gifting may also be beneficial if you are
considering the inclusion of philanthropy in your overall estate plan.
CAN’T I JUST MAKE CHARITABLE GIFTS IN MY LAST WILL
AND TESTAMENT?
Throughout your estate plan you will likely make numerous gifts to family
members, loved ones, and even close friends. Charitable gifts are conceptually
the same as gifts made to non-charitable beneficiaries; however, the way
charitable gifts are treated for tax purposes is often significantly different than
gifts made to non-charitable beneficiaries. For this reason, it is rarely advisable
to simply bequeath assets to a charity in your Last Will and Testament,
particularly if the assets are valuable. If you are fortunate enough to have a
valuable estate, you may miss significant tax avoidance opportunities if you

3. How to Include Charitable Gifting in Your Estate Plan www.nashbeanford.com
3
simply gift assets to a charity directly using your Will instead of using one of the
many other charitable gifting options.
THE TAX BENEFITS OF CHARITABLE GIFTING
Without careful estate planning, taxes can significantly diminish the value of your
estate after your death. One benefit to including charitable gifting in your estate
plan is that many charitable gifts offer tax avoidance benefits or provide a tax
deduction for the taxpayer.
First, gifts made to a charity or non-
profit organization may qualify for the
annual gift tax exemption which allows a
taxpayer to make gifts of up to $14,000
a year to an unlimited number of
beneficiaries tax-free. Best of all, gifts made using the annual exemption do not
count toward the lifetime exclusion limit for gift and estate tax purposes.
Charitable gifts may also offer a tax deduction to the taxpayer in the year the gift
is made. Whether or not a gift qualifies for a tax deduction will depend on a
number of factors, such as whether the interest gifted is a present interest or not
and the precise legal status of the beneficiary.
Federal gifts and estate taxes as well as capital gains taxes can dramatically
impact the value of your estate at the time of death as well as the value of gifts
made to beneficiaries. Strategic use of charitable gifting can help decrease your

4. How to Include Charitable Gifting in Your Estate Plan www.nashbeanford.com
4
gift and estate tax exposure as well as limit the amount of capital gains tax you
and/or your beneficiaries pay.
USING CHARITABLE GIFTS TO CREATE YOUR LEGACY
Along with the tax benefits your estate plan may receive by the inclusion of
charitable gifting in your overall plan, philanthropic gifting also offers you the
chance to leave behind a legacy. Your legacy includes the ideals, principles,
beliefs, and values that you cherish and that you wish to pass down to future
generations. Gifts made to charity can further your legacy in a wide variety of
areas, including:
 Education
 Religion
 Humanitarian endeavors
 Ecological issues
 Animal rights
By including gifts to charities that focus on these issues you have the ability to
exert influence in the areas that are important to you both during your lifetime
and after your death. Depending on the type of charitable gift you make, you
may even be able to get future generations involved in the issues that matter to
you.

5. How to Include Charitable Gifting in Your Estate Plan www.nashbeanford.com
5
COMMON CHARITABLE GIFTING OPTIONS
Although there are a number of ways in which you can include charitable gifts in
your estate plan, some of the more common options include:
 Charitable Trusts –you may wish to create a trust devoted entirely to
charitable beneficiaries or you may combine charitable gifting with non-
charitable gifting by creating a charitable remainder or charitable lead trust
(CRT or CLT). CRTs and CLTs work by allowing you to designate both a
charitable and a non-charitable beneficiary. Distributions are then made to
a non-charitable beneficiary for a specific period of time (CRT) after which
the remainder is gifted to the charitable beneficiary. With a CLT the
charitable beneficiary receives the initial distributions for a set period of
time after which the non-charitable beneficiary receives the assets
remaining in the trust.
 Private Foundations – a private foundation
is a non-governmental, non-profit organization
that managed its own funds. This option should
only be considered when the amount to be
gifted is large enough to justify the expense
involved in running the foundation. Along with
tax benefits, a significant benefit to establishing a private foundation is that
it allows you to involve family members in management roles within the
foundation.
 Donor Advised Fund –this option allows you to make an irrevocable, tax-
deductible contribution to a professionally managed fund. You then make

6. How to Include Charitable Gifting in Your Estate Plan www.nashbeanford.com
6
recommendations for grants to qualified non-profit organizations. Because
you retain no ownership interests in the gift once it is made, you are only
allowed an advisory role within the fund, meaning the fund managers will
make the final decision with regard to how the fund assets are distributed.
 Charitable Gift Annuities –with a CGA, you contribute cash or other
property acceptable to the charity in exchange for fixed annuity payments
to one or two designated individual beneficiaries. The concept is similar to
a trust but no trust agreement is required.
If philanthropy is part of your life now, make sure you make it part of your
comprehensive estate plan. Given the numerous ways in which charitable gifting
can be incorporated into your estate plan and the complex tax laws that should
be considered when making charitable gifts, it is in your best interest to consult
with your Illinois estate planning attorney before deciding which options to
incorporate into your estate plan.
Fidelity, Charity
Planned Giving Design Center, Charitable Remainder Trust
T. Rowe Price, Giving to Charity

7. How to Include Charitable Gifting in Your Estate Plan www.nashbeanford.com
7
About the Author
Robert N. Nash
Robert N. Nash is a partner in the law firm of Nash Nash Bean & Ford, LLP. The law firm has
offices in Geneseo and Moline, Illinois and conference facilities available throughout
Northwestern Illinois. Mr. Nash chose the estate and business planning arena because he
believes it provides a positive force in his clients’ lives. He practices preventative, rather
than remedial law. Robert Nash focuses on all aspects of estate planning, including estate,
gift and income taxes, trust and probate administration, real estate, and business.
Nash Nash Bean & Ford, LLP
www.nashbeanford.com
Geneseo
445 US Highway 6 East
Geneseo, IL 61254
Phone: (309) 944-2188
Fax: (309) 944-3960
Moline
5030 38th Avenue, Suite 2
Moline, IL 61265
Phone: (309) 762-9368
Fax: (309) 944-3960