So, you’ve spent years building your business — nurturing it from a scrappy startup to the successful powerhouse it is today. Now, you’re looking at the next chapter: retirement, freedom, maybe more time fishing in the Pacific Northwest rivers. But there’s one looming question: how do you leave a legacy, make a positive impact on the world, *and* ensure your family isn’t left out in the cold?
Welcome to the land of charitable giving strategies that can help you achieve your goals without disinheriting your Children (or grandkids). Let’s break it down.
Donor-Advised Funds (DAFs): Charitable Giving with Flexibility
Think of Donor-Advised Funds like the “choose-your-own-adventure” of charitable giving. You get to make a donation, receive a tax deduction, and then decide later which charities benefit. It’s a little like setting up a gift card for your favorite nonprofits. Plus, you can contribute now, invest the funds, and grant to charities over time.
It’s a great option if you’re selling your business and want to reduce your tax hit, but still want the freedom to take your time deciding which causes matter most. Just remember, it’s not a blank check for your favorite charity to spend on a Hawaii retreat for the staff (though tempting!). It’s a tool that allows thoughtful, strategic giving on your terms.
Charitable Remainder Trusts (CRTs): Give to Charity *and* Get Paid
Charitable Remainder Trusts are like hitting the “jackpot” button twice. You can sell your business, put the proceeds into the trust, and avoid that big ol’ capital gains tax bill. The trust then pays you (or another beneficiary) an income for life or a set term of years. When you’re done collecting those sweet, sweet payouts, the remainder goes to charity.
It’s a fantastic way to lock in a tax-efficient income stream while still giving a huge gift to causes you care about. Plus, your family doesn’t get cut out of the equation—there are strategies to use CRTs in combination with other tools like life insurance to provide for them as well.
Grantor Retained Trusts (GRTs): Passing Wealth Without a Massive Tax Bill
If you’re a business owner looking to pass the wealth down to your family but you’re staring down the barrel of estate taxes, Grantor Retained Trusts might be your new best friend. You place assets (like your business) into the trust and retain the right to income from it for a period. Once the term ends, whatever’s left in the trust can go to your heirs with little or no estate tax.
This strategy is ideal if you want to reduce the taxable estate value but still maintain some control over your assets for a time. It’s like having your cake, eating it, and then saving a slice for the kids.
Life Insurance: Protecting Your Family While You Give
Now, I know what you’re thinking: “Life insurance? Isn’t that just for covering the mortgage and lost income potential?” Not quite. It can also be used as a powerful tool to ensure your family gets what they deserve when you’re off donating chunks of your estate to charity.
When structured correctly, life insurance can help replace the value of assets that are going to charity, effectively “making your family whole.” In other words, your kids can still inherit the bulk of your wealth, while your charitable plans remain intact. Win-win!
How to Navigate These Strategies
Look, I get it—this stuff can sound complicated. But the beauty of living and working in Oregon (whether you’re in Bend, Portland, or somewhere between) is that we understand the importance of planning ahead. Whether you’re selling your business next year or just starting to think about it, these strategies are key to making sure your retirement, family, and charitable goals all align.
And this is where team **Rosell Wealth Management** comes in. We work with business owners just like you, helping them transition into retirement with peace of mind. We specialize in tax-savvy strategies like Donor-Advised Funds, CRTs, GRTs, and life insurance planning, so you can keep more of what you’ve earned and give back in meaningful ways.
So, if you’ve ever wondered how to donate to charity without disinheriting your family, give me a call. Whether you’re selling your business next month or just dreaming of the day, we’re here to help you chart a course that leaves a legacy, protects your loved ones, and lets you sleep easy at night.
After all, in Central Oregon, we’re not just about hiking the trails—we’re about leaving them better for the next generation.
Rodney A. Cook CFP partner and director of financial planning at Rosell Wealth Management in Bend, and author of In the Know — Turning Your Unneeded Life Insurance Policy into Serious Cash! RosellWealthManagement.com. Investment advisory services offered through Valmark Advisers, Inc. an SEC Registered Investment Advisor. Securities offered through Valmark Securities, Inc. Member FINRA, SIPC 130 Springside Drive, Ste 300 Akron, Ohio 44333-2431. (800) 765-5201. Rosell Wealth Management is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.“Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP, CERTIFIED FINANCIAL PLANNER, and CFP (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.”
*This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.
