Maximizing Your Charitable Giving Through Estate Planning

If you’re someone who has a passion for giving back to charitable causes, you may be wondering how you can continue to do so even after you pass away. Fortunately, estate planning offers a number of opportunities to maximize your charitable giving and make a lasting impact on the causes you care about. Here are some strategies to consider:

1. Charitable Bequests: One of the simplest ways to give to charity through your estate plan is to include a charitable bequest in your will or trust. This involves leaving a specified amount of money or asset to a particular charity or organization upon your death. This can be a one-time gift or an ongoing donation, and can be a great way to support the causes you care about most.
2. Charitable Trusts: A charitable trust allows you to make a significant contribution to a charity while also receiving certain tax benefits. There are two main types of charitable trusts: a charitable remainder trust (CRT) and a charitable lead trust (CLT). With a CRT, you donate assets to the trust, which then pays you a regular income stream for a set period of time. Once that period is over, the remaining assets are donated to charity. With a CLT, the trust makes regular payments to a charity for a set period of time, after which the remaining assets are distributed to your heirs. Both types of trusts can be a great way to support your favorite charity while also benefiting your own financial situation.
3. Donor-Advised Funds: Donor-advised funds (DAFs) are a popular option for those who want to make charitable donations but aren’t sure which organizations to support. With a DAF, you donate a lump sum of money to a fund that is managed by a third-party organization. You can then make recommendations for how that money should be distributed to various charities over time. This allows you to support multiple causes without having to research and manage donations yourself.
4. Charitable Gift Annuities: A charitable gift annuity (CGA) is similar to a CRT in that you donate assets to a charity and receive regular payments in return. However, with a CGA, the payments are guaranteed for the rest of your life, regardless of how long you live. This can be a great way to ensure a stable income stream while also supporting a charity you care about.

Maximizing your charitable giving through estate planning can be a complex process, but with the help of an experienced estate planning attorney, you can develop a plan that achieves your philanthropic goals while also taking into account your financial and personal needs. Our office provides free consultations to all new clients so that you can feel confident and empowered as you establish an estate plan best suited for your needs. 

The information provided herein is intended as a general overview and discussion of the subjects dealt with, and we accept no responsibility for any actions taken or not taken based on this publication. It is not intended, and should not be used, as a substitute for taking legal advice in any specific situation.