As the year draws to a close, our hearts are filled with gratitude. The Legal Education team is especially grateful for the chance to serve you and support your work as estate planning professionals. Thank you for all you do to bring peace and a sense of security to the clients and families you serve. From all of us on the Legal Education team, we wish you and your loved ones a joyous, restful holiday and a very Happy New Year.

For philanthropic clients, year-end tax planning often involves charitable contributions. Many donors have specific purposes in mind and, understandably, want to ensure that the contributions they make achieve their charitable goals. To this end, they may want to restrict the gift or earmark it for a specific purpose; however, an impermissible restriction could risk their charitable deduction. Attorneys should take special care in drafting gift agreements that ensure the client’s wishes will be respected while protecting their tax deduction.

Let’s take a closer look at three common restrictive pitfalls – use restrictions, reversionary interests and deferred gifts – and review some considerations when drafting such agreements.

Trust decanting is an underused strategy for estate planning that can add value to your practice. While very few clients are aware of this option, practices that offer it can have an advantage. Not only is this a great way to offer an important service to your clients, but it also distinguishes you as a practice among competitors.