If you want to support a cause you care about, your estate plan can allow you to do so. Charitable giving through your estate is a way to create a lasting legacy.
There are several ways to include a gift to charity, with trusts being one of the most flexible options. Here are some important points to consider.
Trusts for charitable giving
A charitable trust can hold assets that benefit a nonprofit organization. One common option is a charitable remainder trust. This allows income to be paid to you or someone else for life or a set period. After that, the rest goes to the charity. This type of trust can also offer tax advantages.
Another option is a charitable lead trust. In this case, the charity receives income from the trust for a certain number of years. After that, the remaining assets pass to your family or other beneficiaries. This structure supports a cause while preserving wealth for those you care about.
Other possibilities
You can also name a charity as the beneficiary of a life insurance policy, retirement account or bank account. These gifts usually avoid probate and are easy to update. A simple gift in your will is another option, but it may involve delays through the court process.
Whatever method you choose, it’s important to be specific about the charity and the gift. Include the full legal name of the organization and clarify how the assets should be used if that matters to you.
By planning ahead, you can ensure your charitable goals are met and create an estate plan that reflects your values. Even a small gift can make a big difference to charitable causes. Seeking legal guidance will help you set up a plan that works for you.