Estate Planning for Charitable Giving: Making a Lasting Impact
Estate planning isn’t just about dividing your assets among your loved ones after your passing. It’s also an opportunity to make a lasting impact on the causes you care about through charitable giving. In this blog post, we’ll explore the benefits of charitable giving as part of your estate plan and provide some tips for making the most of your charitable contributions.
Why Include Charitable Giving in Your Estate Plan?
Charitable giving as part of your estate plan can benefit both your favourite charities and your estate. Here are some reasons to consider charitable giving:
- Tax Benefits: Charitable giving can provide tax benefits that can help reduce your estate’s tax liability. By donating to a registered charity, you may be able to receive a tax credit that can offset income tax owing in the year of your death or the previous year.
- Legacy: Charitable giving is an opportunity to leave a lasting legacy and impact the causes you care about beyond your lifetime. You can support a charity that aligns with your values and make a difference in your community or the world.
- Estate Planning Goals: Charitable giving can also help you achieve your estate planning goals. By donating a portion of your estate to a charity, you can reduce the size of your estate and potentially avoid probate fees, leaving more for your beneficiaries.
How to Include Charitable Giving in Your Estate Plan?
Here are some tips to consider when incorporating charitable giving into your estate plan:
- Choose the Right Charity: When choosing a charity to support, it’s essential to research the organization and ensure it aligns with your values and goals. You may want to consider a charity’s reputation, mission, and financial health before making a contribution.
- Determine Your Charitable Giving Strategy: Once you’ve chosen a charity to support, you’ll need to determine your charitable giving strategy. You may want to donate a set amount or a percentage of your estate. Consider how your charitable giving will affect your other estate planning goals and discuss your options with your estate planning lawyer.
- Choose the Right Charitable Giving Vehicle: There are several charitable giving vehicles to consider, such as a bequest in your will, a trust, or a life insurance policy. Discuss the options with your estate planning lawyer to determine the best approach for your goals and circumstances.
- Discuss Your Charitable Giving with Your Family: It’s essential to discuss your charitable giving with your family members to ensure they understand your intentions and are aware of any donations you plan to make. This can help prevent any misunderstandings or disputes after your passing.
Conclusion
Charitable giving as part of your estate plan can be a meaningful way to make a lasting impact on the causes you care about. By incorporating charitable giving into your estate plan, you can achieve your estate planning goals, leave a legacy, and potentially reduce your estate’s tax liability. If you’re considering charitable giving as part of your estate plan, consult with an estate planning lawyer to discuss your options and ensure your wishes are carried out.