Through proper planning, a gift you choose to leave can be encouraging, inspiring, or even life-changing. There are several ways to leave behind gifts through estate planning for causes you care about. Here are some ways you can choose to give and some key things you might want to consider.
You can give a portion of your wealth to your favorite charity as part of your will. To do this, you’ll name the charity in your will and the items or dollar amount the charity should receive. The charity will then be poised to inherit from you if you pass away.
A potential downside of naming the charity in your will is that you may encounter some costs if you change your mind. To remove the charity from your will, you’ll need your estate planning attorney to make an update.
When creating a retirement account, investment account, bank account, or life insurance policy, you’ll be asked to complete a beneficiary designation form. The form names a beneficiary (or multiple beneficiaries) of the monies in the account.
While it’s common to name a person as a beneficiary, you can also name your favorite charity as a beneficiary. With a beneficiary designation, you’ll continue using your account as long as needed.
When you pass away, the money will then pass to the beneficiary. This is often the most straightforward method for transferring money to a charity. You can update the beneficiary designation at any time if you change your mind, and you can continue to freely use your account as long as you live.
A “Give it Twice” Trust (often called a charitable remainder trust or CRT) can be funded by your will or living trust when you pass away. A CRT pays a certain percentage of income to your beneficiaries for life or a term of up to 20 years.
When the beneficiary has passed away, or the term ends, the remainder is transferred to your favorite charity.
The benefit of a charitable remainder trust is that you get the peace of mind that comes with supporting your loved ones. Still, you also get the opportunity to make a difference by funding other causes that you’re passionate about.
Your financial planner and attorney may also want to talk with you about charitable gift annuities, donor-advised funds (DAF), charitable endowments, or other options to help you leave your legacy. There are many ways to transfer assets, and no option is suitable for everyone.
Talk with Hackstaff Snow Atkinson & Griess, LLC attorneys to learn more about strategies for leaving a legacy. Our lawyers have in-depth knowledge of complex estate planning matters and are dedicated to working closely with clients, crafting estate plans that help them support what matters most.
To schedule a confidential consultation, call us today at 303-534-4317 or send us a message.
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