A survey from Key Private Bank polled 122 financial advisers to see how often future generations are involved with a person’s charitable giving. Of those that responded, about 80% said that only some of their clients did so. However, it may be beneficial for parents and grandparents in California to talk to their younger relatives about their philanthropic goals. This is because different generations tend to have different ideas as to what causes are the most worthy to support.
Older Americans generally want to give their money to religious organizations while younger Americans want to help the environment. Ideally, parents and grandparents will learn to respect the opinions of their descendants and cater to their wishes whenever possible. Furthermore, it can be a good idea to step back at times and let them decide how the family will donate its time or money going forward.
As children get older, it is important for older individuals to be seen as mentors as opposed to rulers. In 2019, estate tax law allows a person to transfer up to $11.4 million to heirs or other beneficiaries. That number doubles to $22.8 million for married couples giving away assets jointly. Giving money to charity can also help to lower an estate tax bill, which is why it can be important to have a coherent plan to do so.
There are many issues that a person could need to consider when going through the estate planning process. Among those issues could be how to reduce or minimize state and federal estate taxes. An attorney may discuss multiple options to accomplish this goal such as donating money to charity or making gifts to family members. Individuals may also consider putting assets into trusts as they will be held outside of the estate.