Charitable Gratuitous transfer can be used to max. value of assets transferred to charity. Does it help in maximizing value transferred to heir ? Thanks
if gift taxes (paid by recepient) > inheritance taxes (paid on bequest), charitable gratuitous transfer will accumlate to a lesser amount than bequest value at end. and vice-versa. so there’s no blanket rule for this. specics of the case have to given due consideration before deciding which option will generate a higher value for the asset tranferred to heir.
quite confusing!! if you make a charitable gratuitous transfer you are allowed to make a deduction on current taxes on the estate. This increases the value of the estate by the amount of tax savings. So in essence, increasing the size of the estate ultimately increases the amount inherited. albeit, higher taxes will be due from the much larger estate