When you hear the word “heirs,” you most likely think of close family or friends. However, you can also name charitable organizations as beneficiaries of your estate plan.
Gifting your money to such entities can have considerable benefits for you, as well as the recipients. Understanding how this type of contribution works can help you make confident decisions about how to distribute your money.
Identifying charitable organizations
Not just any organization will give you the same benefits as you could enjoy when you give to charity. The Internal Revenue Service says that entities must meet specific criteria to qualify as charitable organizations. Some examples of places you could consider gifting money include the following:
- A war veterans’ organization
- Specific religious organizations
- A community foundation
- A civil defense organization
Understanding the benefits of charitable planning
Charitable planning could take place while you are still living in the form of monetary donations or gifts. One of the benefits of this estate planning strategy is that you can write off your donations on your taxes. You could also consider implementing a charitable lead trust or a charitable remaining trust to help regulate donations over the years.
Another advantage of charitable planning is that it allows you to see the benefits of your decision to give. You can witness the impact your donations make on its recipients and encourage others to give to the organizations you care about.
Estate planning does not have to stay reserved for the future. Depending on your lifestyle and goals, you can find unique ways to distribute your assets during your lifetime.