October 19–25 is National Estate Planning Awareness Week—a timely reminder that estate planning involves much more than checking “make a will” off your list.
If charitable giving is part of the legacy you envision, it’s important to consider how all the pieces of your estate plan work together.
Think beyond the will
Some assets pass through a will or revocable trust. Others—including IRAs, retirement accounts, life insurance policies, and certain financial accounts—pass through beneficiary or transfer-on-death designations.
That means creating your charitable legacy requires thinking not only about who and what you want to support, but also how particular assets will get there.
For example, you might consider:
Name a charitable fund as an IRA
beneficiary.
You can generally designate a fund at the Community Foundation to receive all
or a percentage of an IRA or retirement account while leaving other assets to
family members. This can be particularly valuable because retirement assets
that are taxable to individual beneficiaries can generally be received by a
qualified charitable organization without the same income tax burden.
Leave a specific dollar amount.
Perhaps you want $25,000, $100,000, or another specific amount to go
direct to charity, or to your fund at the Community Foundation. Your attorney
can incorporate the appropriate language into your will or trust.
Leave a percentage of your estate.
A percentage gift can adjust with the value of your estate over time, rather
than locking in a specific dollar amount.
Create a fund supporting favorite
organizations or causes.
Your estate gift could establish or add to a designated fund benefiting an
organization you care about, or a field-of-interest fund supporting an issue or
community that matters to you.
Give with future community needs in
mind.
An unrestricted gift to the Community Foundation provides the flexibility to
direct charitable dollars where they’re needed most as community needs and
opportunities change.
Your plan can use more than one approach
These strategies don’t have to stand alone. Your charitable plan might combine different assets, beneficiary designations, estate planning documents, and types of charitable funds.
Creating a charitable giving structure can be especially important if you anticipate a business exit or other significant financial event.
The goal isn’t simply to have an estate plan. It’s to have a plan that reflects the people, organizations, causes, and community you want to support.
If charitable giving has been an important part of your life, we’d be honored to help you think about how it can become part of your legacy, too. We can work alongside your attorney, CPA, and financial advisor to explore your options and determine what type of fund may best carry out your intentions for years—and perhaps generations—to come.
