THE CHARITABLE LLC
The Charitable LLC is not just a strategy for Facebook’s Mark Zuckerberg. It is a 19-year time tested solution for those looking to DONATE to a charity or charities of their preference, while retaining CONTROL over the entire LLC.
Control as to:
1) how much to donate;
2) when to donate;
3) what causes to make donations for;
4) how to invest the money in the LLC, and even,
5) how to take the money out of the LLC for personal use.
Money is donated similar to that of any other donation. Money then grows TAX-FREE in the LLC for annual donations and the opportunity to take the money out of the LLC for the client’s personal use (typically collateralized by life insurance).
Donations to the LLC are most often from assets that have significant taxable gains, or, on income that is subject to the highest tax bracket.
The client controls the LLC until death, allowing heirs to take over the LLC. Thus, MULTI-GENERATIONAL.
Money grows in the LLC exponentially because it is growing without tax. The charity receives about one-quarter of the growth of the assets each year, or more, at the client’s discretion.
Money invested in this strategy is taken out of the client’s estate. Therefore it is ESTATE & GIFT TAX FREE and CREDITOR PROTECTED.