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Charitable Planning
Charitable Planning
At Park Wealth Management in Los Angeles, we believe in the power of strategic financial planning to create a lasting impact and benefit for both our clients and the community. With our charitable planning services, we help individuals maximize their philanthropic efforts while achieving their financial goals. Let us embark on this journey together to discover how you can make a difference through strategic financial planning.
Introduction to Charitable Planning
Charitable planning is a purposeful approach to incorporating philanthropy into your financial strategy, allowing you to support causes you care about while optimizing your financial plan.
Strategic charitable giving involves thoughtful decision-making to maximize the impact of your charitable contributions while taking advantage of potential tax benefits. By aligning your values with your financial plan, you can make a difference in the community while also benefiting your financial future.
Donor Advised Fund (DAF)
What Are DAFs: Donor Advised Funds (DAF) serve as a flexible and tax-efficient charitable giving vehicle that allows individuals to contribute assets to a fund, receive an immediate tax deduction, and recommend grants to their favorite charities over time. At Park Wealth Management, we educate our clients on the functionality of DAFs, enabling them to make strategic philanthropic decisions.
How DAFs Work: DAFs work by donors making irrevocable contributions to the fund, which are then invested for potential growth. Donors can recommend grants from the fund to qualified charities, providing a simple and effective way to manage charitable donations.
DAF Funding Benefits: Funding a DAF offers benefits such as consolidating charitable giving, potentially reducing taxes, and facilitating long-term charitable impact. By leveraging DAFs, individuals can streamline their philanthropic efforts while maximizing tax advantages and supporting causes close to their hearts.
Charitable Remainder Trust (CRT)
What Is a CRT: A Charitable Remainder Trust (CRT) is a philanthropic tool that allows individuals to donate assets to a trust, receive income from the trust for a specified period, and then allocate the remaining trust assets to designated charities. At Park Wealth Management, we emphasize the importance of understanding CRTs to help clients achieve their charitable and financial goals.
Types of CRTs: There are two main types of CRTs: Charitable Remainder Annuity Trusts and Charitable Remainder Unitrusts, each offering distinct features and benefits.
Charitable Remainder Annuity Trusts (CRATs) provide stable income based on a fixed percentage of the initial trust value.
Charitable Remainder Unitrusts (CRUTs) offer variable income based on a fixed percentage of the trust's annual revalued assets.
- Benefits of CRTs: The benefits of CRTs include potential income tax deductions, avoidance of capital gains taxes, and the ability to support charitable causes while retaining an income stream. However, considerations such as the irrevocability of the trust, management fees, and impact on heirs should also be taken into account when exploring CRTs as part of your financial and philanthropic planning.
Disclosure: LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A. an affiliate of LPL Financial.
Integrating Charitable Planning Into Financial Strategy
Integrating charitable planning into your financial strategy at Park Wealth Management allows you to align your philanthropic goals with your overall financial objectives, creating a holistic approach to wealth management. By incorporating charitable planning, you can make a meaningful impact on the causes you care about while optimizing your financial plan for tax efficiency and long-term wealth preservation. Balancing charitable giving with your financial strategy not only benefits the community and organizations you support but also provides you with the opportunity to leave a lasting legacy.
Schedule a Consultation
Let Park Wealth Management be your compass in navigating the impact of charitable planning. Together, we will fuse your values with your financial strategy to craft a plan that not only benefits you but also positively impacts the causes dear to your heart. Reach out to us today and let Park Wealth Management steer you towards optimizing your financial future through purposeful philanthropy.