The holiday season is a time for reflection, gratitude, and giving back. As you gather with loved ones and look ahead to the new year, it’s also a great opportunity to think about how you can make a lasting impact through your estate plan. Charitable giving is not only a meaningful way to support the causes you care about, but it can also provide financial benefits that help reduce estate taxes. At Jenkins & Jenkins Estate Planning Attorneys, we work with clients to incorporate charitable giving into their estate plans in a way that aligns with both their philanthropic values and financial goals.
If you’re considering including charitable donations as part of your estate planning this holiday season, here are some important factors to keep in mind:
The Power of Giving: Charitable Bequests in Your Will
One of the simplest ways to support your favorite charities after your passing is through a charitable bequest in your will. A bequest is a direct gift of money, property, or assets that you leave to a charitable organization. It’s a straightforward way to make a significant impact on causes that matter to you, without altering your day-to-day financial plan.
When drafting your will, be sure to:
- Clearly specify the charity or charities you want to support
- Define the exact amount or percentage of your estate you wish to allocate
- Consider whether you want the bequest to go toward a general fund or a specific program within the charity
Including charitable bequests in your will can be an excellent way to honor your legacy and provide support to causes that reflect your values, especially as the year comes to a close and you’re reflecting on what’s truly important.
Charitable Trusts: A Gift That Provides for You and Your Heirs
For those looking to give back in a more strategic way, charitable trusts offer a unique solution. Charitable remainder trusts (CRTs) and charitable lead trusts (CLTs) are two popular options that allow you to provide for both your charitable goals and your family’s financial future.
- Charitable Remainder Trusts (CRT): With a CRT, you can donate assets to a charity while retaining the income generated from those assets during your lifetime. After your passing, the remaining assets in the trust go to your designated charity. This type of trust can reduce estate taxes and provide a charitable deduction, while also generating income for you or your heirs during your lifetime.
- Charitable Lead Trusts (CLT): A CLT works in the opposite way. It provides income to the charity for a set period, and at the end of that period, the remaining assets are transferred to your heirs. This type of trust is often used to reduce gift and estate taxes, while still benefiting your family in the long term.
Both types of charitable trusts can be tailored to meet your specific needs and ensure that your charitable giving continues long after you’re gone.
Making Charitable Gifts During Your Lifetime
Another way to make a lasting impact is by incorporating charitable gifts into your estate plan while you’re still living. Gifts of appreciated assets, such as stocks or real estate, can be donated to a charity, potentially reducing your taxable estate while helping you achieve your philanthropic goals.
Additionally, if you have a retirement account, you can designate a charity as a beneficiary. By doing so, you can avoid estate taxes and pass on the full value of your retirement accounts to the charity of your choice. It’s a tax-savvy way to give back and make a significant contribution to the causes that matter most to you.
Why Now Is the Perfect Time to Give
As the holiday season draws near, people often find themselves reflecting on what they’re grateful for and how they can make a positive impact on their communities. Charitable giving is not just for the holiday season—it’s a gift that can live on for generations. By incorporating philanthropy into your estate plan, you ensure that your values continue to shape the future, long after you’re gone.
Now is also a great time to review your charitable goals with your estate planning attorney. With the end of the year approaching, there may be tax advantages to making charitable contributions before December 31st, especially if you’re looking to maximize deductions for the current tax year.
How to Incorporate Charitable Giving into Your Estate Plan
If charitable giving is something you’ve always wanted to include in your estate plan, now is the time to take action. Whether it’s a bequest in your will, a charitable trust, or a lifetime gift, there are many ways to incorporate philanthropy into your legacy. Consulting with an experienced estate planning attorney can help you navigate the complexities of charitable giving and ensure your wishes are carried out.
At Jenkins & Jenkins Estate Planning Attorneys, we’re here to help you create an estate plan that reflects your values and supports the causes you care about. Reach out to us today to learn more about how you can make a meaningful impact this holiday season—and for years to come.
Conclusion
Charitable giving is a powerful tool that not only benefits your community but can also provide financial advantages. By taking the time to incorporate charitable giving into your estate plan, you can create a legacy of generosity that reflects your values and supports the causes you love. This holiday season, consider giving the gift of a meaningful estate plan that will help you leave a lasting legacy for your family and your community. Contact us today!
