'Tis the Season of Giving: How Do You Include Charities in Your Estate Plan?

Now that the holiday season is upon us, our thoughts turn to gifts for our spouses, families, and friends. It is also a time to consider those less fortunate than us. Charitable giving often peaks during this season, but any time is a good time to think about it. In fact, off-season giving is crucial given the year-round needs of the people your charities help. So, how can you include charities in your plans? Here are ways to provide for charities during your life or after your death:

Providing for Charities During Life: One simple way to give is through cash gifts. However, there are many unique ways to support your favorite charities beyond just cash. Consider making a donation in the name of a loved one; if they support the charity’s work, they appreciate your thoughtfulness. If cash isn’t your preference, you also donate assets like appreciated stocks or real estate. Donating these assets allows you to avoid capital gains tax while still claiming a charitable tax deduction. 

If you don’t want to give up ownership or control of your property but still want to make a gift to charity, consider alternatives like charitable gift annuities, Charitable Remainder Trusts, Charitable Lead Trusts, or even a Family Foundation. These options let you donate assets and receive a tax deduction while retaining control over them.

Providing for Charities After Death: The options available to provide for charities during your life also apply after your death. To do this, you incorporate your wishes in your estate planning documents (such as a Will or Living Trust). For example, you allocate a specific amount or percentage to go to your chosen charities upon your death. You create Charitable gift annuities, Charitable Remainder Trusts, Charitable Lead Trusts, and Family Foundations within your estate planning documents.

There are advantages and disadvantages to the timing of charitable giving, but whether you give while alive or after your death, you leave a legacy that supports your cause.

If you want to learn more about charitable giving, contact Rehberg Law Group at (206) 246-8772 to schedule an appointment.