The holiday season is a time for giving, and for many people, that includes charitable donations. But did you know that incorporating charitable giving into your estate plan can have lasting benefits, not just for the causes you care about but also for your family’s financial security? At Voorhees Law Group, we help clients design estate plans that reflect their values and include strategies for giving back.
Here are a few ways you can incorporate charitable giving into your estate plan:
- Donor-Advised Funds: Flexibility and Control
Donor-advised funds (DAFs) are a popular way to manage charitable giving while enjoying tax advantages. When you contribute to a DAF, you can claim an immediate tax deduction while deciding later which specific charities will benefit from your donation. You maintain control over when and where your contributions go, and you can spread out your donations over several years.
For individuals who want to continue giving throughout their lifetime and after, donor-advised funds provide a simple, flexible option for leaving a lasting impact on the causes you care about.
- Charitable Remainder Trusts: Balancing Generosity and Income
A charitable remainder trust (CRT) offers the ability to give to charity while still benefiting from the assets during your lifetime. Here’s how it works: you transfer assets into the trust, and the trust provides you (or other beneficiaries) with an income stream for a set period of time or for life. After the trust term ends, the remaining assets are donated to the charity of your choice.
CRTs are especially beneficial if you have appreciated assets like real estate or stock. They allow you to minimize capital gains taxes while still generating income for yourself and making a meaningful gift to charity.
- Bequests: A Simple and Direct Option
A bequest is one of the simplest ways to leave a charitable legacy. In your will, you can specify a dollar amount, percentage of your estate, or specific assets to be given to charity. This straightforward approach ensures that the causes you care about continue to benefit even after you’re gone.
Bequests offer flexibility—if your circumstances change, you can update your will to reflect new priorities or add new charitable interests.
- Legacy Planning: Making a Lasting Impact
For those who want to leave a lasting legacy, charitable giving can be integrated into your larger estate plan. From establishing family foundations to creating endowments, we can help you structure your giving in a way that maximizes your impact for generations to come.
At Voorhees Law Group, we can help you explore all your options for charitable giving and ensure they align with your estate planning goals. Request a consultation to begin planning your charitable legacy today.