An estate plan largely revolves around distributing your assets among loved ones once you die. However, this is only one part of the process.
Throughout your life, giving back to the community may have been one of your passions. This is something that can be continued in your legacy. Here are a few tips on how to make charitable giving a part of your estate plan.
Charities can be beneficiaries
One of the most straightforward ways to leave something to charity upon your passing is to make them a beneficiary of your will. This way, you can leave a sum of money to charities of your choice, and you can even leave other assets and property to them. Often, there are tax advantages to leaving to charity in your will. The overall tax on your estate may be reduced.
Charitable remainder trusts
Charitable remainder trusts are an excellent way to make philanthropy a part of your legacy. Donations made this way are generally tax-free. Additionally, trusts can be flexible. For example, you could set up a trust with the instruction to release funds over a set period of years. This way, charitable giving remains part of your legacy for many years to come.
These are just two of the more common ways to give to charity through your estate plan. You can also name a charity as a beneficiary in your life insurance policy, and much more.
Estate plans have several moving parts and it’s important that you utilize the right tools to carry out your precise wishes. Having legal guidance behind you as you draft your plan can help ensure that your wishes are honored.