As Thanksgiving approaches, it is a meaningful time to reflect and consider ways to give back. Incorporating charitable giving into your Estate Plan can support the causes you value, create a lasting impact, and offer potential tax benefits. Here are ways that you can make charitable giving part of your legacy:
Charitable Trusts: Allow you to leave a legacy while benefiting a cause and your estate.
- With a Charitable Remainder Trust (CRT), you or your beneficiaries receive income for a set period before the remaining assets go to charity.
- A Charitable Lead Trust (CLT) gives income to a charity first, with the remainder passing to your heirs, potentially reducing estate taxes.
Bequests: Gifts specified in your will that offer potential tax deductions, allowing you to leave a lasting impact without affecting your assets during your lifetime.
Donor-Advised Funds (DAFs): Accounts created through financial institutions that allow tax-free investment growth and future grants to charities. Allows you to seamlessly support multiple causes over time.
Gifts of Appreciated Assets: Donating assets like stocks or real estate helps avoid capital gains taxes while supporting a charity and potentially reducing your estate’s taxable value.
Naming Charities as Beneficiaries: Designating charities as beneficiaries on retirement accounts or life insurance policies are efficient ways to donate without updating your Will.
This Thanksgiving, reflect on creating a legacy of gratitude by incorporating charitable giving into your estate plan. Our team is here to help you explore these options and make a lasting difference. Contact UBFK Law today to start building a legacy that aligns with your values and supports the causes you care about.