There are many reasons someone may want to work a charitable donation into their will. It leaves a legacy and allows someone more agency in where their assets end up. There are several benefits to leaving some of your inheritance to charity in your will.
Benefits of Giving to Charity in Your Will
Many people do not realize this, but there are tangible benefits to leaving a portion of your inheritance to charity when you pass away.
Some benefits of giving to charity in your will include:
- The ability to memorialize yourself in a way that reflects your values. Depending on how large the donation is after your death, some charities may even name a portion of the building, a park, or a tree after you.
- Take agency over your belongings. Apart from a few special items, such as expensive jewelry that are usually assigned to a specific heir in the will, many of your personal items will have no owner after your death. Usually, these items are sold in an estate sale to random buyers. By giving these items to charity, you have the peace of mind of knowing they will go to a good cause when you pass.
- Reduce your estate taxes. Perhaps the most logical reason for donating to charity in your will is the ability to reduce estate taxes. If you have a high net worth when you die, your estate can be subject to estate taxes, which can drastically cut into the amount your named heir(s) will Charitable donations in the form of planned giving (i.e., outlined in a will) count as a tax deduction. This means the amount of estate taxes owed will be reduced upon your death.
How to Give to Charities in Your Will
To give to a charity in your will, you need to follow specific steps.
- Choose a charity. You should choose a charity that has value to you and has a track record of managing their donations responsibly.
- Decide what to give. Physical assets can be given to charity, just as well as funds. After delegating which of your loved ones will receive what assets, look at what you have left and decide what will be given to charity.
- Name the charity as a beneficiary in your will. This solidifies the decision and makes it legally binding.
- Inform the charity of your donation. Most charities have a specific department for approving legacy donations. You may even get perks once your pending legacy donation is approved.
Giving to a charity in your will allows you to do some good with your final earthly assets. Plus, it can have tax benefits rarely considered. Giving to a charitable cause in a will is a very sound decision for many, especially high-net-worth individuals. Contact Gandhi Selim Law if you want to learn more.