Why Charitable Giving Should Be Part of Your Estate Plan

By Callie W. Cowan, Esq.

Estate planning isn't just about distributing assets; it's also an opportunity to leave a lasting impact on the causes and organizations that matter most to you. Charitable giving is a noble way to make a difference, even after you're gone. Here are a few compelling reasons why you should consider including charitable donations in your estate plan:

• Fulfill Your Philanthropic Goals: If you're passionate about supporting charitable causes, estate planning provides a strategic way to continue your philanthropic efforts. By earmarking a portion of your assets for charitable purposes, you can make a meaningful difference in the world.

• Tax Advantages: Charitable giving in your estate plan can offer tax benefits. Depending on your jurisdiction and the assets donated, your estate may qualify for deductions, potentially reducing the overall tax liability for your heirs.

• Legacy Building: Creating a charitable foundation, endowment, or trust in your name allows your legacy to live on. This can fund charitable activities in perpetuity, ensuring your values endure for generations.

• Family Values: Incorporating charitable giving into your estate plan can help instill the importance of philanthropy in your family. It's a way to pass down your values and encourage future generations to give back.

• Impact on Your Community: Donating to local charities can have a direct and significant impact on your community. Your estate plan can play a vital role in continuing your support for causes that matter locally.

• Tailored Support: You can choose specific causes or organizations that align with your passions and values, whether it's education, healthcare, environmental conservation, or the arts.

• Professional Guidance: To make the most of your charitable giving, consult with experts in estate planning and financial advising who specialize in charitable donations. They can help you navigate the tax implications and identify the most tax-efficient strategies.

Incorporating charitable giving into your estate plan can be as simple as including a bequest in your will, establishing a charitable trust, contributing to a donor-advised fund, or designating beneficiaries for your retirement accounts or life insurance policies.

By weaving philanthropy into your estate plan, you can ensure that your legacy extends far beyond your lifetime, making a positive impact on the world and the causes you hold dear. It's not just about distributing assets; it's about leaving a legacy of compassion, generosity, and positive change.