Day: December 1, 2023

Incorporating Charitable Giving in Your Estate Plan

The holiday season is a time of reflection, gratitude, and giving. As we gather with loved ones to celebrate and look back on the year, it’s also an opportune moment to consider the legacy we wish to leave behind. For many, this includes finding ways to extend the season’s generosity beyond our lifetimes. Charitable giving within estate planning captures the essence of this season, offering a means to create a lasting impact that resonates with our personal values and the warmth of this festive time of year.

Direct Bequests: A Straightforward Approach

A simple and direct way to include charity in your estate plan is through a bequest in your will or trust. You can specify a certain amount of money, a percentage of your estate, or particular assets to be given to a nonprofit organization of your choice. This approach allows you to retain control of your assets during your lifetime while ensuring that your philanthropic goals are met after you pass.

The Charitable Remainder Trust: Income and Impact

For those looking for a way to give that also provides income during their lifetime, a charitable remainder trust (CRT) may be the answer. A CRT allows you to receive a stream of income for a period of time, with the remaining assets going to your chosen charity upon the trust’s termination. This not only benefits you and the charity but also offers significant tax advantages.

Retirement Assets: Leveraging Tax Efficiency

Designating a charity as the beneficiary of your retirement accounts (such as an IRA or 401(k)) can be a tax-efficient way to give. Given that these assets can be heavily taxed if left to individuals, redirecting them to a nonprofit can minimize the tax burden, allowing more of your assets to support the causes you care about.

Donor-Advised Funds: Flexible Philanthropy

Donor-advised funds (DAFs) serve as a flexible option for those who wish to make charitable contributions over time. You can contribute to the fund as frequently as you like and recommend grants to your favorite charities at your convenience. Contributions to a DAF are generally tax-deductible in the year they are made, providing immediate tax benefits while facilitating ongoing support to your charities.

Benefits of Charitable Giving in Estate Planning

The inclusion of charitable giving in your estate plan can result in meaningful tax advantages. Donations made as part of your estate can reduce estate taxes, offering a benefit to your heirs by preserving more of your estate for their inheritance. Additionally, the satisfaction of knowing your wealth will continue to serve a philanthropic purpose can provide immeasurable peace of mind and fulfillment.

Choosing the Right Charity

Selecting which organizations to support is a deeply personal decision and one that should be made with care. It’s important to consider the mission of the charity, the effectiveness of its programs, and its financial health. Doing your due diligence will ensure that your contribution has the greatest possible impact and that your legacy is carried on as you envision.

Working With Professionals

Navigating the intersection of charitable giving and estate planning can be complex. It’s advisable to work with legal and financial professionals who specialize in estate planning and can help tailor a plan that meets your financial goals and charitable intentions. They can provide guidance on tax implications, help you understand the potential impact of your gift, and ensure that your wishes are executed as planned.

Cultivating a Legacy of Generosity

As the holiday lights twinkle and we revel in the joy of the season, it’s important to remember that the spirit of giving doesn’t have to end with the new year. By incorporating charitable giving into your estate plan, you ensure that the causes you care about continue to flourish. It’s a profound way to spread the cheer and goodwill of the holiday season across the tapestry of time.

Let’s Make Your Seasonal Giving Last a Lifetime

Here at Beasley & Ferber, we’re inspired by the generosity that the holiday season brings. If you are considering how to weave the gift of charity into your estate planning, we’re here to guide you. Contact us this holiday season to create a plan that not only benefits you and your loved ones but also casts a long shadow of goodwill and support for the causes you hold dear. Let’s work together to turn your holiday generosity into a perpetual legacy.


Estate Planning for the
Informed Consumer


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