For many people, giving to charity is more than just an act of kindness. It reflects their values and beliefs.
The desire to make a difference often continues beyond their lifetime. Including charitable gifts in an estate plan allows people to leave a lasting impact on the causes they care about. Here are a few ways that this can be done.
Why charitable giving matters to many
Some people want to support a cause that has shaped their lives. Others hope to help future generations or support their community. Charitable giving through an estate plan can be a way to express gratitude, honor a loved one or create a legacy. It can also help reduce estate taxes, though that is not the only reason people choose to give.
Legal tools for charitable giving
There are several ways to give to charity through an estate plan. A common option is to name a charity as a beneficiary in a will. This might be a specific dollar amount, a percentage of the estate or a particular asset.
Another tool is charitable trusts. These can be set up during life or through a will and can provide benefits to both the charity and other heirs. There are several types of charitable trusts, with two of the most common being charitable remainder trusts and charitable lead trusts.
A donor-advised fund is another option. This allows someone to set aside money for future charitable giving. It can be funded during life or through the estate.
Each method of giving has different features. Some offer more control, while others are simpler to set up. The right choice depends on the person’s goals, the size of the gift and how they want to support the cause.
By planning ahead, people can ensure their support for charity continues long after they are gone. To get started, it will help to seek some legal guidance.
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