As we head into the holidays, you may notice more end-of-year nonprofit fundraising letters in your mailbox. That's because many people make charitable donations at the end of the tax year, knowing that they can deduct charitable donations from their income tax for a year in which they made a contribution. Besides year-to-year income tax reductions, however, you can use charitable donations as a way to reduce your estate tax. A person who donates to an approved charity at the time of death can have the amount of the donation subtracted from his or her estate, thus lowering his or her estate tax.
As a new mother myself, I understand the rush of emotion that comes with a new child in the house. You just want to relax and bond with your newest family member, but there are important matters to settle as you and your new bundle of joy get used to life together.