Donation Limits For Trust
There is a limit to the amount of all charitable contributions allowed during a tax year (for private and statutory trusts). One's total charitable deduction can't exceed 50% of one's personal adjusted gross income (AGI) to public charities (100% for trusts); however, this SHOULD NOT BE DONE. With Bulletproof Trusts, it is better to do an EXCHANGE of an asset for a Capital Interest Certificate, allowing one to re-obtain said assets at any time in exchange for the Capital Interest Certificate. When a DONATION is made, the asset(s) are unrecoverable. For further details on the avoidance of tax-liability for a Trustee's income, click here.
If one is unable to use the entire donation deduction this year, the unused deductions can still carry forward for five years. Typically, if one wants to make a donation from their IRA, there is an obligation to withdraw those funds, pay the tax and then make the donation. There is an exception: IRA owners who are age 70½ or older can transfer up to $100,000 per year to an eligible charity tax-free. Even better: The transfer counts toward one's required minimum distribution (RMD) for the year. To be an eligible transfer, funds must be transferred directly by the IRA trustee to the charity (if the funds are pulled out by one's self and a check is written, it does not qualify for the exception).
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