Parents in the Cincinnati area are increasingly looking at planned giving as a way to create long-term charitable impact while supporting family goals. With changing tax rules, new philanthropic tools, and shifts in charitable priorities, 2025 presents opportunities for families to align giving with personal and financial objectives.
What Is Planned Giving?
“Planned giving” refers to structured charitable contributions that are arranged in advance, often as part of an estate plan. It allows individuals to direct assets to charities through wills, trusts, or financial instruments. These strategies support personal values and provide long-term funding for chosen causes while potentially offering tax advantages to the donor or their heirs.
Why Is Planned Giving Important for Families?
Planned giving allows parents to shape how their values are carried forward. By identifying causes that matter to them, families create meaningful legacies that benefit future generations. These decisions also provide an opportunity to discuss charitable goals with children, reinforcing a sense of responsibility and shared purpose beyond immediate financial considerations.
What Are the Common Types of Planned Gifts?
Common planned gifts include bequests, charitable remainder trusts, charitable lead trusts, and gifts of life insurance or retirement assets. Each approach offers benefits based on financial goals, timing, and family needs. The best option depends on the desired balance between providing for loved ones and supporting charitable organizations.
How Do Tax Laws Affect Charitable Giving in 2025?
Tax laws continue to influence how gifts are structured and reported. For 2025, adjusted exemption limits and potential changes in deductions may affect charitable planning decisions. Parents should review their estate and income tax situations to identify strategies that maximize available benefits while aligning with long-term financial objectives.
How Can Parents Incorporate Planned Giving Into an Estate Plan?
Parents can integrate charitable giving through wills, trusts, beneficiary designations, or specific bequests. Including charitable provisions in an estate plan formalizes intentions and provides clarity for heirs. Lawyers and financial advisors create coordinated strategies that address legacy and family wealth transfer objectives.
What Role Do Donor-Advised Funds Play in Modern Philanthropy?
“Donor-advised funds” allow parents to contribute assets, receive an immediate tax deduction, and recommend grants to charities over time. These funds have gained popularity for their flexibility and ease of administration. Parents can use these funds to teach children about charitable priorities and maintain involvement in giving decisions across generations.
How Can Life Insurance Be Used for Charitable Giving?
Life insurance policies can serve as an effective charitable tool. Donors may name a charity as a beneficiary or transfer ownership of a policy to the organization. This approach allows significant gifts at a relatively modest cost while preserving other assets for heirs.
What Should Parents Discuss With Their Children About Charitable Goals?
Parents should communicate openly about charitable values, reasons for giving, and the intended impact of their contributions. Involving children in these discussions can encourage responsible financial habits and shared commitment to philanthropy. These conversations also reduce confusion about estate intentions and promote family unity around charitable purposes.
When Should Families Review Their Planned Giving Strategies?
Families should revisit their charitable plans periodically, especially after major life events or tax law changes. Reviewing these plans every few years confirms that charitable designations and financial arrangements still reflect current goals. Ongoing evaluations also keep estate documents and beneficiary information accurate and up to date.
Are There Special Considerations for Cincinnati-Area Donors?
Cincinnati-area donors often support local organizations that strengthen community resources, education, and health initiatives. Parents may choose to direct gifts toward institutions with personal or regional significance. Local lawyers familiar with Ohio estate and tax laws can assist in aligning charitable objectives with state-specific requirements.
Our Cincinnati Estate Planning Lawyers at Wolterman Law Office Protect Client Interests Regarding Their Planned Giving
If you need legal guidance with planned giving strategies, contact our Cincinnati estate planning lawyers at Wolterman Law Office. For a free consultation, call today at 513-488-1135 or contact us online. With office locations in Loveland and Blue Ash, Ohio, we proudly serve clients in the surrounding areas.