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How Do I Make My Annual Charitable Giving Part of My Estate Plan?

Charitable giving is a noble cause that can change and uplift the lives of many people and communities. However, charitable giving doesn't just help the charities and causes you support, it can also help lower your tax liability and increase your wealth management success. Most people consider making annual charitable contributions during their lives, but they forget to include this in their estate plans. Planning ahead can help ensure that even after your passing, charitable organizations that you support can continue their work.

In this blog post, we will guide you through the process of making your annual charitable giving part of your estate plan.

Tips for Including Charities in Your Estate Plan

Charitable giving is a vital aspect of estate planning that many people overlook. Making charitable giving a part of your estate plan provides you with a chance to create a lasting impact and honor the causes that matter to you. Here are a few tips to help you include charities in your estate plan:

  • Identify the Charitable Organization: The first step is to choose a charitable organization that you would like to include in your estate plan. Once you have made your choice, you should discuss your intentions with them to ensure that they are in alignment with your goals and values. It is important to confirm that they are set up to receive charitable contributions in a way that is meaningful to you. Examples include setting up a charitable trust, foundation, scholarship, or endowment fund.
  • Determine the Charitable Vehicle: After identifying the charitable organization, the next step is to determine the charitable vehicle that best suits your needs. For example, you may want to give a fixed amount of money, a percentage of your estate, or give a percentage of your income every year. You may also want to consider the different types of charitable trusts, such as a charitable remainder trust or a charitable lead trust. These vehicles can provide tax benefits to you and your estate while also supporting the charitable causes you care about.
  • Seek Advice from an Estate Planning Attorney: Charitable giving is a complex process. Seeking advice from a professional estate planning attorney can provide you with the tools, insights, and strategies to make informed decisions that benefit both you and your chosen charity. Estate planning attorneys can help you draft necessary documents like wills, trusts, and powers of attorney that incorporate your charitable giving wishes, while also handling legal issues that arise in connection with estate plans.
  • Engage Your Family Members: Engaging your family members in your charitable giving plan can be an important step toward creating a lasting legacy. Inviting your children or other family members to be a part of the process can help them understand and appreciate the value of charitable giving and inspire them to carry on your legacy. It is important to be clear about your intentions with your family and communicate why you chose your selected charity or charities.
  • Monitor and Update Your Charitable Giving Plan: Once you have established your charitable giving plan, it is essential to monitor the plan regularly and make necessary updates to keep pace with changes in your life and circumstances. Estate plans are dynamic and ever-changing. Therefore, periodic reviews and updates can be very important to ensure that your charitable giving plan remains consistent with your goals.

Start planning today to take the first steps toward creating a more meaningful estate plan.

Need Help Creating or Updating Your Estate Plan? Contact Our Experienced Estate Planning Attorneys in Sacramento Today!

To navigate an uncertain future, it's crucial to be prepared. At The Law Office of David A. Martin & Associates, our Sacramento estate planning team is dedicated to safeguarding your family's best interests and honoring your wishes after you're gone. With our expertise and experience, we'll help you develop an estate plan that provides the necessary protection.

If you're ready to take the first step, give us a call today at (916) 299-3936 or reach out to us online to arrange a confidential consultation with our knowledgeable estate planning attorneys. Discover the advantages of establishing or updating an estate plan and gain peace of mind.