People drafting estate plans often want to provide support and meaningful inheritances for their close loved ones. Charitable giving can also sometimes be a priority.
People may want to provide resources for causes that are dear to them. They may even want to establish a memorial scholarship fund at a local institution of higher education. Charitable giving can be a valuable component of an estate plan, and there are numerous strategies to achieve charitable goals.
The three options below are among the most common and successful means of adding charitable giving to an estate plan.
1. Bequests in wills
When an individual is confident that their loved ones will honor their wishes, they can make arrangements for the transfer of specific resources to a charitable cause in their wills. Doing so is the simplest solution, but it could lead to a will contest in some cases.
2. A charitable trust
Trusts are harder to contest and provide opportunities for ongoing financial support for charitable causes. Individuals with the resources to fund a charitable trust may be able to create scholarship funds or provide recurring support for causes that they hold dear.
3. Property donations
Many charitable organizations accept donated vehicles or boats. Many organizations accept home furnishings, clothing and other personal property. Donating assets that friends or family members are unlikely to want can give those resources new life. Donated goods can either generate revenue for charitable causes through resale shops or provide direct support for people going through difficult times, such as those overcoming homelessness or fleeing domestic violence.
Discussing charitable giving preferences with a lawyer can help people explore their options for leaving the most meaningful legacy possible after they pass. There are many different ways to have a positive impact on charitable organizations when people craft custom estate plans.