Many people have causes that they want to support. While they can do that while they’re alive, some are fortunate enough to be able to continue to support those charities after they die.
There are several ways that a person can make this happen. It is critical to consider the available options and how they play into the estate plan.
Include them in your will
One option to pass assets to charities is to name them in your will. To do this, you must be careful. This includes naming the specific charity to which you want to leave assets. When making the will, be sure you use the charity’s legal name to avoid confusion with charities of similar names. It helps to include their tax identification number and contact information.
Name them as beneficiaries on financial accounts
Another option is to give a direct gift by naming the charity as the payable-on-death (POD) designation on a financial account. You can do this for checking, savings, retirement or investment accounts.
Use a charitable remainder trust
A charitable remainder trust is another option to consider. This is a tax-exempt entity that allows you to pass as much as possible to the charity of your choice. There are many regulations for these trusts, so be sure you have experienced legal guidance to help ensure that it’s established according to the law.
Charitable giving is only one part of a comprehensive estate plan. That’s why it’s important to know what estate plan tools best help you achieve your goals. A sound and comprehensive estate plan can give you peace of mind.