Arizona Tribune - Make Global Philanthropy a Part of Your Wealth Strategy and Legacy

Incorporating global philanthropy into your wealth strategy can help you give back while getting potential tax breaks. Read on to learn how you can join the growing movement of global philanthropy by using trusts, funds or foundations to help you create your legacy. Not sure which option is right for you? Consulting with a financial advisor that does wealth planning can help you to decide which approach would best fit your needs and help you to make the most impact.

Charitable remainder trusts

A charitable remainder trust (CRT) provides annual income to a beneficiary of your choice for a set time while letting you give a percentage of the trust's value to a charity. This setup can benefit both the beneficiary and the charity. The beneficiary receives regular income from the trust and the charity will get a significant donation. Broadly speaking, here's how it works:

• You transfer assets like cash or property into the CRT with the ability to defer income taxes on those assets.

• The CRT pays steady income to at least one living beneficiary for a specific time frame.

• When that time frame ends, the remaining funds go to the designated charity.

.So, how can a CRT become part of your wealth strategy? This will depend, in part, on your goals.

Let's look at a hypothetical example:

Dahlia* is a successful author who wants to support global education for girls while maintaining an income stream between books.

• She transfers $2 million in stocks and real estate into a CRT, potentially avoiding a larger tax bill than if she had sold the assets.

• Dahlia specifies the percentage of the trust's total value that she'll receive as regular payments. The CRT then pays that percentage to Dahlia, giving her a predictable income stream.

• After Dahlia's lifetime, the remaining money goes to the charity, funding global scholarships.

• Dahlia receives a steady income, defers income taxes on the sale of her transferred trust assets and makes a long-term impact.

Donor-advised funds

A donor-advised fund (DAF) is a collaborative private fund controlled by a charitable organization.

• A DAF is a charitable investment account that supports charities.

• You can contribute cash, stocks, as well as other assets into the DAF, and receive a tax deduction.

• Your donations are invested for tax-free growth, helping to minimize your taxes and maximize your philanthropic impact.

How does a DAF affect wealth in real life?

Richard*, an entrepreneur entering retirement, wants to support medical research while minimizing taxes.

• He contributes $1 million to a DAF, receiving a tax break for his donation that year.

• He later donates commercial property to the fund before liquidating it, saving thousands in capital gains taxes.

• The fund invests both the cash and real estate assets, growing the balance tax-free.

• Over time, Richard recommends that all of the donations go to cutting-edge medical research programs in Africa, spreading his impact across decades.

Private foundations

A private foundation is a personalized charitable vehicle often managed by a small group of investors who fund charitable activities to help build a legacy.

• You can establish and fund a private foundation with diverse assets including cash, stocks or real estate.

• The foundation can also hire board members, who not only help ensure the fund's continuity, they can also help distribute grants to charities or other global programs.

• Donations may qualify for tax deductions, although they may also be subject to certain IRS rules and annual reporting.

For example, Raveena*, a 70-year-old philanthropist, wants to fund scholarships for underprivileged students in South Asia while involving her friends and colleagues in charitable work.

• Raveena establishes a private foundation with a tax-deductible amount of appreciated stock.

• The foundation invests the assets, growing its value over time.

• Her closest friends join the board, helping distribute annual grants to support scholarship programs globally.

• The foundation creates a legacy for Raveena's life and career while helping her board members share a philanthropic vision that extends far into the future.

Change the world with your personal wealth management

Whether through CRTs, DAFs or private foundations, your financial decisions can create a lasting impact while generating income, tax savings and a structured path for giving.

And remember, if you're ready to make global philanthropy a core part of your personal wealth management strategy, it's important to talk with a financial advisor and wealth management firm that offers investment advisory services. Consider opting for a firm that has a clear philanthropic focus and a robust set of wealth management solutions.

The world is waiting. Let your generosity inspire change today.

Sources:

https://www.irs.gov/charities-non-profits/charitable-remainder-trusts
https://www.redcross.org/donations/ways-to-donate/donor-advised-funds.html
https://www.irs.gov/charities-non-profits/charitable-organizations/donor-advised-funds
https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions

* The case studies presented are provided as an illustration and these are fictional clients for showcase purposes. There is no guarantee of the future success of any of the strategies discussed.

This article is intended to inform and to guide, it is not meant to serve in place of advice from a professional certified public accountant (CPA) or financial advisor. Please contact your CPA or financial advisor today to learn more about how setting up a charitable trust, fund, or foundation could impact you from a tax perspective.

This material is provided for informational and educational purposes only. It is not intended as investment advice or a recommendation that you take a particular course of action.

UBS Financial Services Inc. does not provide legal or tax advice and this does not constitute such advice. UBS strongly recommends that persons obtain appropriate independent legal, tax, and other professional advice.

Trust services are provided by UBS Trust Company, N.A. or another licensed trust company. UBS Trust Company, N.A. is an affiliate of UBS Financial Services Inc. and a subsidiary of UBS AG. Trust investments are not deposits or other obligations of, or guaranteed by, UBS Trust Company, N.A. or UBS AG or any of their affiliates. Trust investments involve investment risks, including possible loss of the principal.

As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business, that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, please review the client relationship summary provided at ubs.com/relationshipsummary or ask your UBS Financial Advisor for a copy. In providing financial planning services, we may act as a broker-dealer or investment adviser. When we act as investment adviser we charge a separate fee for the service and enter into a written agreement with you. The nature and scope of the services are detailed in the documents and reports provided to you as part of the service.

© UBS 2025. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS Group AG. Member FINRA/SIPC.

Contact Information:

Name: Sonakshi Murze
Email: [email protected]
Job Title: Manager

SOURCE: iQuanti

View the original press release on ACCESS Newswire

L.Adams--AT