Estate planning largely revolves around ensuring that your loved ones receive an inheritance when you pass away. However, there may be other things that you hold dear and want to include in your estate plan.
If charitable giving has played an important role in your life, then you may want to make that part of your legacy too. There are a number of ways that you can include a charity or charities in your estate plan. Here are a few things to consider.
Charities can be beneficiaries
One of the most simple ways to leave assets to a charity is to make the charity a beneficiary in your will. By doing this, you can highlight which assets you want to leave to which charitable causes.
Charitable remainder trusts
Another popular estate planning instrument for charitable giving is charitable remainder trusts. There are several benefits to using a charitable remainder trust. Firstly, you can set up the trust so that the charity receives an annual sum rather than a lump payment. This could help with the sustainability of the organization, and it also means that your legacy will continue for years to come.
Charitable remainder trusts are also typically tax-exempt. This means that there will be few deductions, and your chosen charity will really get the value out of what you leave behind.
Estate planning can be complex but it’s much easier with the right guidance behind you. Seek as much legal information as possible so that you can create a plan that works for you.