Leaving your money to a charity in your will isn’t just a good way to manage the distribution of your funds after your death. It’s also a fantastic strategy for leaving a legacy that can transform the lives of those who come after you. If you’re thinking about legacy gifting, make sure you understand the strategies you can use in order to make the most of your gifts. For help organizing a legacy gift to Arizona Friends of Foster Children Foundation, reach out to our team today.
The Importance of Charitable Giving in Estate Planning
Charitable giving is a key part of the estate planning process. When you designate how your assets will be distributed after your death, you can make a big difference in the charities and causes that mean the most to you. If you’re thinking about leaving a legacy of charitable donations behind, now is the time to designate those gifts.
Methods for Leaving Money to Charity
There are several strategies you can use to leave money to a charity that you want to support.
1. Lump Sum Amounts
One of the easiest ways to give to a charity in a will is through a lump sum gift, which specifically designates the amount you intend to leave to the charity. The designated amount is given directly to the charity after your passing, and its board or representatives can choose how to use it. You can also use this method for leaving tangible gifts, stocks and bonds, or other assets to the charity of your choosing.
2. Percentage Gifts
Percentage-based gifts pass on a percentage of your remaining assets to the charity of your choice once all debts are taken care of and your assets are ready to be distributed. In some cases, percentage-based gifts can be larger than lump sum amounts, particularly if the value of your assets rises over time.
3. Trusts
For individuals with large estates to manage, giving donations through a trust can be incredibly useful. A trust can manage those funds and distribute them over time, rather than gifting them all at once. Proper management of a trust can grow those assets and increase the value of your gift over time.
The Tax Benefits of Legacy Gifts
You likely already know that giving to charity can have considerable tax implications during your lifetime. What you may not realize, however, is that legacy gifts can have tax benefits for your estate and your descendants. Charitable donations can reduce the value of your estate, which may lower overall estate taxes. Ultimately, that can mean that your friends and family members receive more of the value from your estate.
Consult with a Legal or Financial Advisor
If you’re thinking about donating to a charity in your will, consult with a financial advisor or lawyer to get a better idea of how you can maximize your gifts and how you can secure them so that your final wishes are followed. Tax laws and charitable giving requirements can change over time, so make sure to you update your plans regularly to ensure that your assets are divided as you intend. In addition, review your will regularly with your legal advisor to ensure that it remains accurate and reflects your current family plans.
Learn More About Our Planned Giving Program
Our Planned Giving Program makes it easy for individuals who wish to leave charitable donations to youth in foster care. Through this program, you can transform lives long after you’re gone, leaving a legacy that can help children and youth in foster care secure their educations, their needs, and their futures. Donate now or contact Arizona Friends of Foster Children Foundation to learn more about how you can make a difference in the lives of foster children, not now and in the future.
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