Charitable Giving Through Your Estate Plan
The way you choose to use your estate can leave a lasting mark on the world. In addition to leaving money and assets behind for your children and other loved ones, you may choose to give to the charitable causes that you hold near and dear. At Entz Burton & Associates, we can help you create an estate plan that reflects what matters most to you.
The Oklahoma estate planning attorneys at Entz Burton & Associates have built a strong reputation in the Oklahoma City area for our commitment to clients. Read more testimonials about our firm. Attorney J. Michael Entz is passionate about helping clients make the most of what they have spent their lives building, and we can help you do the same. Call us at 405-773-9800 to schedule a consultation with an estate planning lawyer.
An Overview of Charitable Giving in Estate Planning
When you choose to support charities with your estate plan, you opt to designate some or all of your assets to charitable causes upon your passing. This gives you the chance to leave a legacy that will last generations.
When you choose to support charitable causes in your estate plan, you must think about which charitable causes you want to support, how much you want to give, and how you want to give. There are multiple ways to support a charity; for example, you may give them a lump sum, give them valuable assets they can use in meeting their goals, or establish a trust for them. You’ll also want to do proper research on the specific charities you support so you know that your hard-earned assets are going to good use.
The good news is that this is a well-established part of estate planning, so your estate planning attorney can help you explore your options and craft a plan that suits your goals.
Different Ways to Include Charitable Giving in Your Estate Plan
What kind of legacy do you want to leave behind? A lot depends on which assets you have to bequeath to charitable organizations and how you want to pass them along. One option you may explore is simply giving a lump sum to the charity in your will or trust. If you include it only in your will, it may need to go through probate before it reaches the charity. If the money is in your trust, it may pass to the charity immediately without the stress of probate.
You can also choose to set aside a percentage of your estate for the charity. This is especially useful if you expect your estate to grow in the years to come—the lump sum you designate now could end up being much less than what you’d actually want to give in a few decades.
Others opt to set up a charitable trust or foundation. A charitable remainder trust, for example, splits income between beneficiaries for a period of time and then gives the rest to charity. A charitable lead trust works the opposite way. Financial support goes to the charity first, and then the remainder goes to chosen beneficiaries after you pass. Donor-advised funds, which are run by charities, accept irrevocable donations from estates.
Legal Requirements for Charitable Giving
Whenever you choose to support a charity with your estate plan, it’s crucial to work with an estate planning law firm that can help you stay in line with legal requirements to avoid extra fees and delays. Your charitable giving intentions should be clearly outlined in your will or trust to avoid issues or disputes from other beneficiaries. Ensure that you use the charity’s proper legal name and outline the type of gift you are giving. This is one reason you want to work with an estate planning attorney; any vague or ambiguous language can lead to disputes in court, which can slowly drain the value of your estate over time.
Those who opt to set up a charitable trust must do so with the help of an estate planning lawyer. Because of the tax benefits that come with this type of trust, you must follow the law to the letter to avoid losing those valuable tax benefits.
Choose Entz Burton & Associates for Your Estate Planning Needs
When you’re ready to use your assets to support your favorite causes, our estate planning law firm is here to help you bring your dreams to life. Set up a consultation now by contacting us online or calling us at 405-773-9800.
Attorney J. Michael Entz at Entz Burton & Associates is an experience lawyer in estate planning law, business formation and asset protection serving the families in Oklahoma City and Weatherford office.
