Gifts to charity during lifetime or at death will reduce the size of the gross taxable estate. An additional benefit of lifetime gifts is that an income tax deduction is available within certain percentage limitations. If the estate owner is not willing or able to contribute the entire asset during lifetime, he or she may consider a split interest deferred gift. The ownership interests in an asset can be split or divided into two parts, the pricipal ( or remainder) and the earnings ( or income). In a split interest gift, one portion is given in trust for charity, and the other portion is retained.

• Split Interest Gifts
• The Income tax Deduction
• Charitable Income Trusts

This document was last modified on July 26, 1999

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