Incorporating charitable giving into your estate plan is a powerful way to leave a legacy that reflects your values, supports causes you care about and makes a lasting impact on the world. For many people in California, the process of estate planning offers an opportunity not just to pass assets to loved ones, but also to make meaningful contributions to organizations that align with their passions.
Choosing the right charities to include in your estate plan requires thoughtful consideration and a clear understanding of your long-term goals. What the “right” charities are is a matter of personal preference. There are so many excellent charities to choose from that committing to any particular approach can be an understandably tough process.
Making decisions
The first step in choosing charities is identifying the causes that matter most to you. Whether you’re passionate about education, environmental preservation, medical research, the arts or social justice, narrowing your focus helps ensure that your giving has personal significance. You may already support nonprofits, and including them in your estate plan can extend your commitment well into the future.
Once you’ve identified one or more causes, research potential organizations associated with them to ensure that they align with your values and use donations effectively. Look for transparency in financial reporting, a track record of meaningful impact, and good governance. Websites like Charity Navigator, GuideStar or the Better Business Bureau’s Wise Giving Alliance can offer insights into how different organizations operate and how they spend their funds.
After selecting the charities you want to support, decide how you want to structure your gifts. The most straightforward method is to include a bequest in your will or trust. This can be a specific dollar amount, a valuable asset or even a percentage of your overall estate. You can also name a charity as a beneficiary of a life insurance policy, retirement account or donor-advised fund.
For those interested in more advanced planning, tools like charitable remainder trusts (CRTs) or charitable lead trusts (CLTs) can be used to support both charitable and non-charitable beneficiaries while offering potential tax advantages. These structures allow you to support a cause over time while also benefiting your heirs.
Ultimately, choosing charities to include in your estate plan is a deeply personal decision—one that can allow you to make a difference far beyond your lifetime. With guidance from an experienced legal team, you can craft a plan that honors your values, supports meaningful causes and creates a legacy of generosity for generations to come.