The Estate of The Union Season 4|Episode 7 is out now! We continue our Conversations with Non-Profits series, where our listeners have an opportunity to learn about the great works of local and state non-profits.
In this episode of The Estate of The Union, Zach Wiewel chats with CEO Erica Blue of Austin Sunshine Camps about the fantastic work they have been doing for kids for nearly 100 years! We learn about how Austin Sunshine Camps provide youth living near or below the poverty line an opportunity to spend seven or ten days at one of two camps they provide for children.
Their programs enrich the community by encouraging and facilitating the power to succeed through education and healthy living. Austin Sunshine Camps renders the space and comfort kids need to look beyond their current situation and dream big! It is a fun conversation with a wonderful organization.
If you would like to donate, or volunteer at Austin Sunshine Camps, please visit their website, www.SunshineCamps.org or give them a call at 512-472-8107.
In each episode of The Estate of The Union podcast, hosts and lawyers Brad Wiewel and Zach Wiewel will give valuable insights into the confusing world of estate planning, making an often daunting subject easier to understand. It is Estate Planning Made Simple! The Estate of The Union Season 4|Episode 7 is out now! The episode can be found on Spotify, Apple podcasts, or anywhere you get your podcasts. If you would prefer to watch the video version, please visit our YouTube page. Please click on the links to listen to or watch the new installment of The Estate of The Union podcast. We hope you enjoy it.
Texas Trust Law focuses its practice exclusively in the area of wills, probate, estate planning, asset protection, and special needs planning. Brad Wiewel is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. We provide estate planning services, asset protection planning, business planning, and retirement exit strategies.
If you have a goal of combining your philanthropy with your estate planning, there are strategies to be tax-smart in your giving. Tax smart giving takes advantage of charitable gifting rules to help charities while increasing tax efficiency. Like all estate planning, philanthropy should be intentional and strategic, requiring careful planning with an experienced estate planning attorney. A recent article from The Wall Street Journal, “Giving Smarter: Tax-Savvy Philanthropy for Wealthy Families,” explains how smart giving tactics can reduce taxes while creating a legacy of giving.
Tools include Donor Advised Funds (DAFs), Charitable Remainder Trusts (CRTs), Charitable Lead Trusts (CLTs) and Qualified Charitable Distributions (QCDs).
The DAF offers a simple way to make deductions up front and take a bigger deduction without giving the entire donation at once. Some benefits of a DAF include receiving an immediate tax deduction, avoiding long-term capital gains taxes if long-term appreciated assets are donated, simplified record keeping and relatively low fees. The best results from a DAF come from directly donating appreciated assets, such as stocks or mutual fund shares.
Charitable Remainder Trusts are a means of creating a steady stream of income for a charity. The CRT assumes you’ll give money to a set of beneficiaries over a specific period. At the conclusion of the trust, the charity receives the remainder. The tax deduction is immediate and appreciated assets sold within the trust are free of capital gains taxes. CRTs are irrevocable, which needs to be kept in mind while creating the tax-savvy estate plan.
A Charitable Lead Trust takes a different approach. The trust provides income to charities for a specific period. At the end, any assets in the trust go to the beneficiaries named in the trust. A CLT is also irrevocable. This can work to reduce the taxable value of the estate and allow assets to be passed on to beneficiaries. There are state laws to consider, so you’ll need the help of an experienced estate planning attorney.
These trusts require careful planning and consideration considering your overall long-term goals as well as your philanthropic goals.
For very high-net-worth people, a family foundation offers a high degree of control and provides tax benefits. However, a family foundation must have a charitable purpose, and a certain percentage of net assets must be distributed to charity annually. A 990-tax form must be filed, an excise tax will be due,and meticulous records must be kept. While family members can receive compensation for working in the family foundation, any payments must be reasonable, and the foundation must be in line with 401 (c)(3) regulations. A DAF may be an easier way to gain similar advantages with far less paperwork.
Talk with your estate planning attorney to ensure that your philanthropy combines with your overall estate planning goals. A philanthropic legacy doesn’t have to involve millions. However, at any level of wealth, a plan ensures that your wishes are followed and you reap tax benefits. Accomplishing both takes planning. If you would like to learn more about charitable giving, please visit our previous posts.
The Estate of The Union Season 4|Episode 6 is out now! We continue our Conversations with Non-Profits series, where our listeners have an opportunity to learn about the great works of local and state non-profits.
In this episode of The Estate of The Union, Zach Wiewel shares a spirited conversation with Carter Smith, a board member of the Texas Parks & Wildlife Foundation.
We learn more about our vital and thriving Texas parks system and how the Foundation works in partnership with the state to help raise funds and awareness of these natural jewels of Texas!
If you would like to donate, or become a member of the Texas Parks and Wildlife Foundation, please visit their website, tpwf.org, or give them a call at 214-720-1478.
In each episode of The Estate of The Union podcast, hosts and lawyers Brad Wiewel and Zach Wiewel will give valuable insights into the confusing world of estate planning, making an often daunting subject easier to understand. It is Estate Planning Made Simple! The Estate of The Union Season 4|Episode 6 is out now! The episode can be found on Spotify, Apple podcasts, or anywhere you get your podcasts. If you would prefer to watch the video version, please visit our YouTube page. Please click on the links to listen to or watch the new installment of The Estate of The Union podcast. We hope you enjoy it.
Texas Trust Law focuses its practice exclusively in the area of wills, probate, estate planning, asset protection, and special needs planning. Brad Wiewel is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. We provide estate planning services, asset protection planning, business planning, and retirement exit strategies.
Many people want to give back to their communities or support causes that reflect their values. Including charitable giving in your estate plan is one of the most meaningful ways to do that. Whether you’re passionate about education, health, the arts, or social justice, your legacy can continue to make an impact long after you’re gone. There are many ways to include a charity in your estate plan.
There’s no single right way to give. The best method depends on your financial situation, the assets you hold and your goals for your family and chosen charities. Thoughtful planning not only helps maximize your impact but can also provide tax advantages and avoid complications for your heirs.
1. Make a Bequest in Your Will
One of the most straightforward ways to give is by naming a charity in your will. This is known as a bequest. You can designate a specific dollar amount, a percentage of your estate, or a particular asset such as property or stocks. Bequests are flexible—you can update them at any time, and they allow you to support causes you care about without affecting your current finances.
2. Name a Charity as a Beneficiary
You can also name a charitable organization as a beneficiary on retirement accounts, life insurance policies, or payable-on-death bank accounts. This approach bypasses probate and allows the charity to receive the funds directly. It’s a simple and effective way to leave a gift without altering your will or trust.
3. Create a Charitable Remainder Trust
A charitable remainder trust (CRT) allows you to provide income to a beneficiary, such as a spouse or child, for a set number of years or for their lifetime. After that period ends, the remaining assets go to a designated charity. CRTs are useful for people who want to support loved ones during their lifetime and still give back to charity in the long run.
4. Set Up a Donor-Advised Fund
A donor-advised fund (DAF) lets you make a charitable contribution now, receive an immediate tax deduction, and recommend grants to charities over time. DAFs are especially appealing for people who want to involve family members in charitable decisions or support multiple causes over several years.
5. Donate Appreciated Assets
Gifting appreciated stock, real estate, or other valuable assets directly to a charity can be more tax-efficient than donating cash. When you donate an asset that has increased in value, you may avoid capital gains taxes while also claiming a charitable deduction based on the full market value.
6. Fund a Scholarship or Endowment
If you want your gift to support a specific purpose, such as education or research, consider funding a scholarship or endowment. These gifts often come with naming opportunities and provide long-term support for institutions or programs that align with your goals.
7. Involve Your Family in Your Giving Plan
Estate planning is also an opportunity to share your values with future generations. Involving your children or grandchildren in charitable giving decisions can help them understand your priorities and foster a spirit of generosity. It also helps reduce misunderstandings and promotes unity around your legacy.
There are many ways to include a charity in your estate plan. No matter how you choose to give, working with an estate planning attorney is important to ensure that your intentions are clearly documented and legally enforceable. Contact our estate planning firm to put the right planning in place now so that your charitable legacy can live on for generations. If you would like to learn more about charitable giving, please visit our previous posts.
High-net-worth individuals and families often hold stocks, real estate, or other assets that have significantly increased in value over time. Selling these assets outright can trigger capital gains taxes, reducing the asset’s net value. However, strategic gifting—whether to family members or charities—can minimize tax liabilities for high net-worth families, while ensuring that wealth is transferred efficiently.
By understanding gift tax rules, charitable giving strategies and estate planning considerations, individuals can preserve more of their wealth while benefiting loved ones and the causes they care about.
Why Gifting Appreciated Assets Makes Sense
Gifting highly appreciated assets offers several financial advantages:
Reduces estate size – Helps minimize estate taxes by transferring wealth while living.
Avoids or reduces capital gains taxes – Capital gains taxes may be eliminated or deferred if an asset is gifted instead of sold.
Supports charitable causes – Donating appreciated assets directly to charities maximizes deductions, while providing financial support to nonprofits.
Leverages lower tax brackets – Gifting to beneficiaries in lower income tax brackets allows them to sell the asset with reduced capital gains exposure.
Careful planning ensures that these benefits are fully realized while complying with tax laws and avoiding unintended financial consequences.
Understanding Gift Tax Rules and Exemptions
The IRS imposes gift tax rules on high-value asset transfers. However, several exemptions allow for tax-free gifting.
Annual Gift Tax Exclusion
In 2025, individuals can gift up to $19,000 per recipient per year without triggering gift tax reporting. Married couples can combine their exclusions, allowing up to $38,000 per couple annually.
Gifting within these limits enables gradual wealth transfer without reducing the federal lifetime estate and gift tax exemption, which currently stands at $13.61 million per individual (subject to legislative changes).
Lifetime Gift and Estate Tax Exemption
Gifts exceeding the annual limit count toward an individual’s lifetime exemption, reducing the amount that can be passed estate-tax-free upon death. However, gifting assets while living can significantly reduce estate tax liabilities for individuals with estates exceeding the exemption amount.
Step-Up in Basis Consideration
Gifting appreciated assets can result in capital gains tax consequences for the recipient. Unlike assets inherited at death, which receive a step-up based on fair market value, gifted assets retain the donor’s original purchase price (basis).
For example:
If a parent purchased stock at $50,000 and it is now worth $250,000, gifting it to an heir would pass on the original cost basis of $50,000.
If the recipient sells the stock, they will owe capital gains tax on the $200,000 gain.
For individuals concerned about minimizing tax burdens for heirs, gifting certain assets while retaining others for inheritance may be the most tax-efficient strategy.
Charitable Giving Strategies for Appreciated Assets
Donating Stock Instead of Cash
One of the most tax-efficient ways to support a nonprofit is by donating appreciated securities directly. Doing so:
Avoids capital gains taxes that would apply if the stock were sold before donating.
Provides a full charitable deduction for the fair market value of the asset.
Maximizes the impact of donations, as the charity receives the full value without tax deductions.
For example, donating $100,000 in appreciated stock instead of selling it and donating cash could save $20,000 or more in capital gains taxes.
Charitable Remainder Trusts (CRTs)
A Charitable Remainder Trust (CRT) allows individuals to donate highly appreciated assets, while retaining an income stream during their lifetime. This strategy:
Defers capital gains taxes, allowing the trust to reinvest the entire asset value.
Provides a charitable tax deduction based on the present value of the donation.
Supports charities, while ensuring a lifetime income stream for the donor or beneficiaries.
CRTs are ideal for those who wish to benefit from their assets while making a long-term charitable impact.
Donor-Advised Funds (DAFs)
A Donor-Advised Fund (DAF) allows individuals to contribute appreciated assets, receive an immediate tax deduction and distribute funds to charities over time. DAFs provide:
Flexibility in choosing which charities to support over multiple years.
Tax-efficient giving by allowing donations to grow tax-free before distribution.
Simplified record-keeping for those making multiple charitable contributions.
DAFs are effective for individuals who want to maximize tax savings, while maintaining control over charitable donations.
Estate Planning Considerations When Gifting Assets
Gifting appreciated assets plays a key role in estate planning, reducing taxable estate size and ensuring smooth wealth transfer. An estate planning attorney can help:
Structure gifts to minimize tax burdens for both the donor and recipient.
Determine whether assets should be gifted outright or placed in a trust for greater protection.
Balance lifetime gifting with posthumous wealth transfer strategies.
For individuals with high-value estates, integrating gifting into a broader estate plan ensures optimal tax efficiency and legacy preservation.
Optimize Your Gifting Strategy with Estate Planning
Gifting highly appreciated assets requires careful planning to balance tax efficiency, wealth preservation and charitable giving. Whether you are donating assets, transferring wealth to family, or incorporating gifting into your estate plan, strategic gifting can minimize tax liabilities for high net-worth families. If you would like to learn more about gifting, please visit our previous posts.
The Estate of The Union Season 4|Episode 1 is out now! In this episode of the ESTATE OF THE UNION, Brad Wiewel is going to share with you how to SUPER STRETCH an IRA!
Here’s some background: Retirement accounts like IRAs, 401ks and 403bs are subject to a myriad of new rules on how fast the money needs to be distributed to a non-spouse beneficiary. While there are exceptions, for the vast majority of beneficiaries, the money must be emptied out in ten years, which means that those funds are going to be subject to taxes more quickly and now they are growing in a “taxable” environment.
Enter the Testamentary Charitable Remainder Trust (weird name, right?). As Brad describes it, this trust which can be part of a revocable living trust or a will, and it allows the ultimate beneficiaries (kids, etc.) to take the retirement account distributions over their LIFETIME (Super Stretch), not just ten years! Brad paints the BIG picture and gives enough details for it to make sense to you.
In each episode of The Estate of The Union podcast, host and lawyer Brad Wiewel will give valuable insights into the confusing world of estate planning, making an often daunting subject easier to understand. It is Estate Planning Made Simple! The Estate of The Union Season 4|Episode 1 is out now! The episode can be found on Spotify, Apple podcasts, or anywhere you get your podcasts. If you would prefer to watch the video version, please visit our YouTube page. Please click on the links to listen to or watch the new installment of The Estate of The Union podcast. We hope you enjoy it.
Texas Trust Law focuses its practice exclusively in the area of wills, probate, estate planning, asset protection, and special needs planning. Brad Wiewel is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. We provide estate planning services, asset protection planning, business planning, and retirement exit strategies.
Charitable gift annuities can be a benefit to those seeking to donate to charities they care about. A Charitable Gift Annuity (CGA) donated to a qualified 501(c)(3) charity creates an immediate tax deduction for a portion of the contribution and a fixed income stream from the charity for as long as the grantor lives. With the minimum contribution usually $5,000, a CGA is accessible for many people seeking to create a legacy and lower taxes, according to a recent article, “How about a gift that pays you back?” from Los Angeles Daily News.
Who could benefit from a CGA?
A person who wants to give generously but is concerned about having enough income for the future.
Someone who needs a last-minute tax deduction and has already reached contribution limits for an IRA or 401(k) plan.
A philanthropic-minded person who wants to leave a large amount or all of their estate to charity and wishes to have the business end of their giving done all at once.
A donor who wants to avoid or defer capital gains tax on an asset they want to donate to charity.
An estate planning attorney should be involved in creating and executing the CGA to ensure that all requirements are met so that the CGA achieves the desired results and works in tandem with the rest of the estate plan. The estate planning attorney will set up the CGA. You then donate the asset to the charity. The gift is set aside and invested by the charity. You receive fixed monthly or quarterly payments as long as you are living. After your death, the charity receives the funds remaining in the account.
The income tax deduction is the contribution minus the present value of the payments to the donor. The estate planning attorney can make the calculations. Current annuity rates range from 4.6 to 10.1% for 50 and older, based mainly on age. Let’s say someone made a $100,000 contribution. They would receive $4,600 to $10,000 a year from the charity.
The amount received never fluctuates and is fixed so it won’t adjust for inflation. However, it is secured by the charitable organization’s assets and continues at the stated rate, no matter how the annuity investments perform.
Another example: a couple in their 70s funds a Charitable Gift Annuity with $50,000 of appreciated stock originally purchased for $20,000. They will receive an income tax charitable deduction of $17,584 and a payment of 6% or $3,000 a year for the rest of their lives.
Charitable gift annuities can be a benefit to those seeking to donate to nonprofits. The charity needs to be a qualified 501(c)(3), and it’s best to pick a well-established charity with a Charitable Gift Annuity program in place. Your estate planning attorney will be able to review the program to be sure that it aligns with your overall estate plan. If you would like to learn more about charitable planning, please visit our previous posts.
The Estate of The Union Season 3|Episode 7 is out now! The current immigration debates are nothing new, and are politically charged by both parties. Casa Marianella is an answer – not a complete one, but an amazing one. One that works!
We are fortunate to have Jennifer Long, the Founder of Casa Marianella as a guest. Casa Marianella welcomes displaced immigrants and promotes self-sufficiency by providing shelter and support services. Casa, as it is called, is the most successful and delightful haven for those coming here for a new life.
It’s not a shelter in the classic sense, it seems more like a loving way-station to move people from other places on to success. Plus, Jennifer has a manner of explaining all this is a tone and form that make it easy to “get”. To learn more about the valuable work of Casa Marianella, please visit their website: www.casamarianella.org
If you are interested in volunteering with Casa Marianella, please email volunteer@casamarianella.org.
In each episode of The Estate of The Union podcast, host and lawyer Brad Wiewel will give valuable insights into the confusing world of estate planning, making an often daunting subject easier to understand. It is Estate Planning Made Simple! The Estate of The Union Season 3|Episode 7 is out now! The episode can be found on Spotify, Apple podcasts, or anywhere you get your podcasts. If you would prefer to watch the video version, please visit our YouTube page. Please click on the links to listen to or watch the new installment of The Estate of The Union podcast. We hope you enjoy it.
Texas Trust Law focuses its practice exclusively in the area of wills, probate, estate planning, asset protection, and special needs planning. Brad Wiewel is Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. We provide estate planning services, asset protection planning, business planning, and retirement exit strategies.
Information in our blogs is very general in nature and should not be acted upon without first consulting with an attorney. Please feel free to contact Texas Trust Law to schedule a complimentary consultation.
