During your estate planning process, you can prevent some of your income from being taxed by donating it to charity. This good deed, whether you donate to churches or your favorite charity, are generally considered monetary gifts, or tangible property.

Depending on your unique financial and situation and goals in the estate planning process there may be ways to reduce or eliminate estate taxes through the combination of estate tax exemptions and charitable deductions. Navigating charitable giving to best protect your assets can initially appear confusing, tax laws are complex. But the government regularly encourages charitable gifts following someone's passing.

Because there are no limitations, charitable deductions usually are not capped. Family members and charities can receive large estates while mitigating any potential tax liability by making strategic use of the charitable deduction combined with estate tax exemptions.

There are a number of methods and strategies that can be used to address your specific goals. One often useful tool is a charitable remainder trust is created. From this, the creators generally receive an income tax deduction immediately, assets are sheltered from capital gains, and they will receive an income for the remainder of their lives. Following the creator's death, the trust's balance is given to charity.

This type of trust, though, is irrevocable, meaning it cannot be changed or amended, and there are no heirs. This trust does have benefit though. It allows the creators to build an estate outside of the trust from the additional income generated. The option to purchase additional insurance is also available. Because an increased income flow is available through these types of irrevocable trusts, a lifetime of giving is possible.

Source: Farm Press, "Charitable giving should be part of estate plan," Hembree Brandon, Jan. 6, 2012