Estate plans allow testators to provide for their dependents. They can also ensure that assets with emotional value transfer to the people closest to them. For some people, charitable giving may be an important aspect of their intended legacy.
They may want to help fund a scholarship program for students with dyslexia or leave resources for an animal welfare charity. Those hoping to leave a positive impact on the world after their passing may be able to achieve that goal using one or more of the three tactics briefly explained below.
1. Funding a charitable trust
People hoping to create scholarships or provide lasting financial support for causes they want to establish charitable trusts. They provide the baseline funding for the trust, and the trustee then donates interest or investment proceeds to a specific cause year after year.
2. Donating property to an organization
Many charitable organizations accept donations of personal property. Domestic abuse shelters, for example, often accept housewares, clothing and even furniture. Other organizations solicit the donation of vehicles, boats and other valuable assets for the non-profit to sell to generate revenue. Naming a charitable organization as a beneficiary set to receive certain physical possessions in a will can be an appropriate strategy.
3. Selling assets for a financial donation
People frequently have personal property that their beneficiaries may not care to inherit. In such cases, they could instruct a personal representative to sell those assets and donate the sale proceeds to a specific charitable cause.
Those hoping to leave a positive legacy may need help crafting effective estate plans, and that’s okay. Charitable giving often requires careful preparation to maximize impact and minimize the risk of conflict.