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Charitable/Philanthropic Planning

There are very few advisors in the country that understand and utilize the tools of charitable planning. Yet, these are some of the most powerful and effective planning options available. There are many instances when the very best outcome can be achieved by deploying a charitable technique. This has been a specialty and passion of ours since the beginning. Charitable planning allows families an array of options and opportunities that other strategies often can’t provide.

Integrating charitable planning with other planning strategies is quite often the most powerful path to a successful result. Navigating through the many charitable options and applying the right solution for each specific aspect of advice is an important aspect of the work we undertake. 

In addition, we have co-developed a strategy that few advisors are aware of and fewer utilize. The combination of a young pooled income fund, a preferred LLC and an extraordinary private placement life insurance policy allows us to:

  • Secure a significant charitable income tax deduction

  • Sell assets without capital gains tax

  • Provide income for multiple generations

  • Create a secure, tax favored income stream between 4 and 4.5% 

  • Allow all growth to accrue to the benefit of the family outside of the estate

  • Allow existing investment management advisors to remain in place 

This strategy, which is unique to us, has been used very successfully to mitigate income taxes for pre and post-sale tax. 

There are many tax advantages from employing philanthropic tools: income tax deductions; avoiding or deferring capital gains tax; providing asset protected income for multiple generations; estate tax reduction. However, tax advantages are only one aspect of philanthropic planning. There are also emotional and psychological advantages. Families of wealth often seek a greater purpose and vision. Philanthropy can be a guidepost that allows the family to gather and discuss important non-family issues. 

Families can also use giving to mentor younger generations in important skills, teaching financial management, social responsibility, and decision making in a safe, non-threatening environment.

Wise financial decisions need context and framework. That’s why we create financial models to test and display multiple strategies to make certain that all stakeholders are comfortable and confident in the decisions they are making. We can use this proprietary modeling capability to compare a number of scenarios until we are able to arrive at an outcome that is satisfactory to all.

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