As the holiday season draws near, it's a time for spreading joy and considering ways to extend generosity beyond our immediate circles.
Have you contemplated leaving a legacy of giving to charitable causes through your estate plan? At Thomas J. Manzi, PC, we're committed to helping you craft a meaningful impact through your estate planning decisions.
Let's explore how to designate a charity as a beneficiary in your estate plan.
While many view beneficiaries as solely family and friends, it's important to note that charitable organizations can also be included as beneficiaries. If you're thinking about leaving a charitable donation as part of your final wishes, understanding the process of naming a charity as a beneficiary is key. Let's delve into the fundamental aspects:
Designating a Charity as a Beneficiary
The process of leaving a donation to a charity involves three primary steps:
1. Identifying the Organization You Want to Support:
Choose the charity or cause you wish to support and ensure you have the correct legal information and identification numbers.
To learn more about the authenticity of a charity before you give, check out charitynavigator.org to see how your charity aligns with your values.
2. Determining the Gift You'd Like to Make:
Decide on the nature of the gift, whether it's a specific dollar amount, designated assets, or a percentage of your estate.
3. Update Your Estate Plan:
Incorporate the charitable donation into your will or living trust, utilizing guidance and sample gift language provided by most charitable organizations.
Benefits of Communicating with a Charity Beneficiary
While not mandatory, informing the charity of your charitable bequest can have multiple advantages. It allows for proper planning and ensures that your gift aligns with your intended use. For substantial donations or complex assets, contacting the charity in advance is advisable. Seeking advice from planned-giving professionals can optimize your donation and increase its impact.
Maximize Your Impact
Charitable organizations excel in leveraging donations to maximize their impact. Exploring options like community foundations, charitable trusts, or private foundations can offer tailored benefits and widen your philanthropic reach.
Understanding potential income and estate tax deductions related to charitable donations is crucial. Although bequests constitute a smaller portion of total charitable giving, recent tax policy changes have influenced donation trends.
Clarifying concerns regarding the contribution of charitable bequests, their prevalence, and potential family reactions can streamline the process and ensure your intentions are met.
Conclusion
Integrating a charitable donation into your estate plan is a profound way to create a lasting impact and support causes close to your heart. It reflects your values and signifies a commitment to making a positive change that lasts beyond your lifetime. Our estate planning experts are dedicated to guiding you through the process of including a charity as a beneficiary in your estate plan. Contact us today to begin crafting a legacy that extends beyond your lifetime, making a difference in causes that hold significance for you.
Embrace the spirit of giving during this holiday season and secure a brighter future for generations to come through thoughtful estate planning decisions.