Leaving a meaningful legacy often requires more than simply leaving property or money for loved ones. Many people plan to leave a lasting legacy through charitable giving.
They have certain causes or organizations that they support, and they draft estate plans that allow them to posthumously continue supporting those causes. There are numerous different ways for testators considering charitable bequests to plan for those intentions. The three strategies below are among the most common.
1. Create a charitable trust
In cases where the goal is to provide lasting financial support for a specific cause, a charitable trust can be an excellent tool. People can fund trusts and arrange for regular distributions to charitable causes for many years after their passing. With proper investment of trust assets, the charity recipient can benefit from the trust indefinitely.
2. A lump-sum donation
Perhaps a testator intends to sell their personal property after their passing, and they want to allocate a portion of the proceeds to a specific organization. Maybe they want to earmark one of their financial accounts for charitable donation after their passing. Including instructions for a lump-sum gift in a will is a common means of charitable giving.
3. Donating physical property
Family members and other loved ones may not want clothing, furniture and other personal property from the estate. Many charitable causes accept donations either for direct use by those in challenging situations or for resale at charity shops.
Reviewing charitable goals and personal resources with a skilled legal team can help testators plan effectively for charitable giving. The right strategy can help to better ensure that an individual leaves a positive impact on others through charitable giving.