Legal Question in Wills and Trusts in California
Can a Family Charity be Created to Avoid Estate Taxes?
Mom has over a million dollars. Can she create a charity and give money to the charity while she is alive so that her estate can avoid paying death tax? If so, can family members get salaries from the family charity? Can her Prop 90 property tax exemption be passed on to the family charity as it can to her own children? Assuming all this is possible, would Mom's kids (the only members of the charity) only have to pay income tax when and if the charity closes down, say ten years later?
2 Answers from Attorneys
Re: Can a Family Charity be Created to Avoid Estate Taxes?
Please see an estate planning attorney before you do anything drastic!
Your mother could set up a foundation, or charitable remainder or charitable lead trust, but there may be other ways to save estate tax more in line with her objectives.
The estate planning attorney can discuss all the options, especially in light of the new estate tax laws, and find the best way to meet her objectives and pay the least amount of tax.
Re: Can a Family Charity be Created to Avoid Estate Taxes?
Rather than devise any hare-brained schemes to avoid paying taxes, which may not be owed in any event, why don
t you ask Mom to spend a little bit of her million dollars on an experienced estate planning attorney. If the thought of paying an attorney would cause your mother an untimely death, then you could FOR FREE go to your public library and read some books about estate planning.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
