Your estate plan can do more than protect your loved ones, you can use it to help others through charity. Including charitable wishes in estate planning is not complicated.
Here is how you can do so:
Use your will
The first method you can use to include charitable giving in your estate plan is stating so in your will. Besides including your loved ones and the assets to inherit, you will set aside particular assets to be given to one or more charities of your choice.
Establish a charitable trust
A charitable trust, managed by a trustee, which can be you or your loved one, can help you support a charity. You can establish a charitable remainder trust (CRT), with which the trust will pay income to your beneficiaries for a specified period, and the remaining assets will pass to your chosen charity. Or a charitable lead trust (CLT), whereby the charity will receive income from the trust for a specified period, then your beneficiaries will get the remaining assets according to the trust’s rules.
Contribute a charitable rollover from your IRA
Older people can contribute funds from their individual retirement accounts (IRAs) to charity. Your funds will be withdrawn from the IRA and donated directly to your charity choice. If you opt for this route, get as much information as possible.
Give a gift
Another way to give to charity through your estate plan is through gifts. With this option, you can designate a major gift to a charitable organization. These include cash, real estate property, equity and life insurance, among other assets.
Charitable giving through estate planning allows you to contribute to society. Additionally, you may enjoy tax benefits. Consider legal help to know how to approach this matter.