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My grandfather passed away a little while back and apparently I'm one of the people he had listed as a beneficiary in his will. I'm due to inherit a small chunk of change, but I always donate my excess income to charity so ultimately all that inheritance is going to a non profit (givewell to be exact, it's the most efficient option for anyone wanting to maximize the effectiveness of their donations!).

However, I already have so much I plan to donate this year to charity that I will likely hit the cap on how much I can claim for charitable donations on my taxes. I currently have over 100% of my annual income in savings 'allocated' to charitable donations, which I'll be donating this year, or possible over the course of multiple years to maximize the tax savings on the donations, I still need to investigate the best option. The point being that if the money in the trust is inherited by me it will then take time before I can efficiently donate it and I worry about ultimately paying taxes multiple times on it in the mean time.

I know much of the money we will be inheriting is in a trust that my grandfather's financial advisor helped him set up. My mother is one of the executors of my grandfather's will and is handling the trust. I'm wondering if there is any legal way I can have her send that money directly from the trust to a charity of my choose which may be more efficient then my inheriting it just to re-donate it.

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    "The point being that if the money in the trust is inherited by me it will then take time before I can efficiently donate it and I worry about ultimately paying taxes multiple times on it in the mean time." what taxes are you expecting to be paying on this inheritance? Mar 8 at 15:19
  • @mhoran_psprep various capital gains taxes, but In addition any taxes on gains I make with investing the money while I'm in control of it will be taxed, where as if I was able to transfer it into my charitable fund right now I could invest the money without taxes on gains with it until I was ready to grant the money
    – dsollen
    Mar 8 at 16:40
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    The answer depends on the details of the trust which the OP's mother (or the estate's lawyer) knows. One possibility is to disclaim the inheritance in which case ir might go to charity as per the terms of the trust, or it might go to the inheritor of the residual estate, which might well the OP's mother. Mar 8 at 16:51
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    If you had done this last year, CARES increased the charity deduction to 100% for 2020 only. You can still exceed the 60% limit in one year and carry-forward the excess up to 5 years. If you receive the money and invest it but don't sell and thus realize the gains, you can donate the appreciated stock (in kind) without either you or the charity paying cap gains tax. Mar 10 at 6:21

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