Charitable Giving and Your Estate

Disclaimer: This article on charitable giving and your estate plan is intended for the purposes of providing information only and is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.

“You can’t take it with you.” This old saying illustrates that our material possessions won’t do us good after death. But it also highlights an essential truth about wealth and philanthropy: we can’t take our money with us when we die, but we can choose to leave a lasting legacy through charitable giving.

If you’re interested in incorporating charitable giving into your estate planning, this article will outline a few things you need to keep in mind. Of course, when it comes to estate planning, you want to discuss these options with your lawyer and accountant to ensure they are right for you.

Why Incorporate Charitable Giving Into Your Estate Plan

There are many reasons to do so, but here are just two:

1. You can make a lasting impact on your chosen causes and organizations.

One of the great things about charitable giving is that it allows you to direct your assets to causes and organizations you value. This means your money can continue to benefit others long after you’re gone.

Because you can specify how your gift is used, you can be sure that it will have the maximum impact. For example, you might choose to give to a scholarship fund that will help students from low-income families. Or you might support a cancer research center.

2. It can provide significant tax benefits for your beneficiaries.

Another great reason to incorporate charitable giving into your estate plan is that it can provide significant tax benefits for your beneficiaries.

For example, if your will includes a gift to charity, your estate will include a credit for that gift at tax time. This can save your beneficiaries a significant amount of money in estate taxes.

Three Tips for Charitable Giving and Estate Planning

We’ve discussed why you might want to incorporate charitable giving into your estate plan. Let’s look at three tips to help you do it effectively.

You do not have to gift cash.

One common misconception about charitable giving is that you can only do it with cash. But this isn’t true! You can also give other assets, such as stocks, bonds, and even real estate.

The advantage of giving non-cash assets is that they can be worth more than their original purchase price. You should consult with your financial advisor or accountant to see what types of assets would be best to give.

Give your executor flexibility with charitable giving.

When making your estate plan, you’ll need to name an executor to fulfill your wishes after you die.

One of the things you’ll want to do is give your executor some flexibility when it comes to charitable giving. For example, your financial situation may have changed since you made your estate plan, and your executor may need to adjust your charitable gifts.

Or, the organization you initially chose to support may no longer be in operation. By giving your executor some flexibility, you can be sure that your charitable gifts will go to an organization that is doing good work and that you would be proud to support.

This brings us to our next point…

Review your estate plan (including your chosen charities) often.

Your estate plan is not set in stone. As your life changes, you may need to make some adjustments. That’s why it’s vital to review your estate plan regularly and update it as required.

Review your estate plan regularly, especially if you have a major life event, such as a marriage, child, or new home.

If you incorporate charitable giving into your estate plan, be sure to review your plans and make any necessary changes. This will ensure that your generous gifts go to the causes and organizations you care about.

Estate Planning Designed For You

Your estate planning should reflect your unique circumstances and goals. At Beeksma Law, we understand that no two estate plans are alike. We will work with you to create an estate plan designed specifically for you and your family, including how to support the charities you care about.

If you currently have an estate plan, when was the last time you reviewed it? If it has been more than *** years, or if there have been significant changes in your life, it’s time for an update.

Contact us today to schedule a consultation. We can help ensure that your estate plan is up-to-date and meets your current needs.