An estate plan is more than a document that guarantees the financial security of your beneficiaries. It can be a critical factor in defining your legacy. Most individuals want to be remembered for the good they have done, hoping that their legacy lives on in their deeds. It is for this reason that philanthropic goals are smoothly and effectively integrating with estate plans.
In fact, philanthropic endeavors have become so crucial in estate planning that they’re part of the wealth management course. Not all philanthropic efforts are equal, and you’ll want to carefully consider the repercussions of your final decisions before you set them to paper. Use the tips below to help guide you through the process.
Choose Relatable Charitable Causes
Odds are that you will not contribute to a charitable cause unless you feel a strong connection it. Choosing causes that demonstrate your passions will not only make you feel better about your decision, but it may encourage others to give in memory of something you once loved.
Decide What You’ll Donate
Once you’ve decided where you’ll donate, you’ll want to select which assets you’d like to bequest. Money is the most common form, but you may also choose to donate art, food, supplies, or even a much-needed resource.
Determine How The Beneficiaries Will Receive Your Gift
You might decide to use community foundations to give out their donation. However, this method could mean a lack of control and some extra tax charges for your estate. Alternatively, you might have the option to set up a private foundation dedicated to your cause and use it to send the donations based on current needs. A foundation also has fewer tax obligations.
Talk To Trusted Advisors
The best way to ensure that your philanthropic goals are met long after you’re gone is to talk to an attorney in the presence of the family members or individuals responsible for executing your estate plan. The attorney will document the necessary obligations and make sure there is a well thought out plan in place to meet them. This way, the family’s legacy as a philanthropic one can be maintained by the numerous generations that follow.
The decision to include philanthropic endeavors in your estate plan often comes with a sense of pride and achievement. It also allows you to leave a legacy of selflessness and set a good example for future generations. Include philanthropy in your estate plan to attach a sense of good to the memory you leave behind.