Philanthropy is a great way to ensure that your estate is put to good use after you are gone. By leaving your estate, or part of it, to charity, you will contribute to causes and organizations that are meaningful to you, making a lasting impact on the world.
With all the good that including philanthropy in your estate plan can do, you may be wondering how to incorporate it into your estate planning effectively. After all, there are many considerations to take into account when planning your estate. The following are three ways to incorporate philanthropic giving into your estate plan that are worth considering.
Select a charitable cause that is important to you
The best philanthropic endeavor is one that resonates deeply with your values, passions, and personal experiences. By selecting a cause that is important to you, you can ensure that your philanthropic giving is not only impactful but also fulfilling and meaningful. This alignment will also help motivate your beneficiaries and trustees to carry out your charitable intentions with care and dedication, ensuring that your legacy continues to make a positive difference in the world long after you’re gone.
Designate the assets you’ll give
By designating assets to give to charity in your estate plan, you can ensure that your philanthropic goals are carried out according to your wishes. This may include cash, securities, real estate or other valuable assets. Consider which assets you would like to allocate to charity and how they can best serve the charitable cause you’ve chosen.
Establish a charitable trust or foundation
You will need a vehicle for structuring your philanthropic giving in your estate plan. One effective way to do this is by establishing a charitable trust or foundation. These entities allow you to set aside assets specifically for charitable purposes and provide a structured framework for distributing funds to your chosen causes over time.
Getting legal guidance will help to ensure that your charitable intentions are carried out in accordance with applicable laws and regulations and that your estate plan is structured in the most tax-efficient manner possible.
