How to Make Sure Your Charitable Estate Donation Is Effective
During the crafting of an estate plan, an individual may choose to utilize a part of their life savings to give back to a charity. This is called a charitable estate donation. However, simply deciding to give isn’t enough to ensure that the charity is going to benefit from your donation. The following includes detailed information on how to make sure your estate donation is effective once the funds are released to them.
Conduct a Proper Vetting Process Before Adding It to Your Estate Donation Plan
Although a charity may state that they are going to help someone or something that you are passionate about, you should never take their word for it. The fact is that there a lot of organizations that will run on a specific message but may have multiple causes they support. This can lead to your money being divided among a few that you may not agree on. This is why it is critical that you vet your chosen charity to ensure that your money is being used correctly and effectively.
Providing Assets Rather than Funds
One of the lesser-known parts about giving to a charity is that they are going to be taxed for those donations. This essentially means that the funds you leave behind are not entirely what they are going to get. So, how can you make your estate donation that much more effective? A business planning lawyer in Las Vegas may recommend leaving behind retirement assets instead. The reason for that is because when you leave assets, the charity does not have to pay taxes on them. In addition, removing taxes from your estate can actually lessen the burden for your family as they would now be eligible for a federal estate tax charitable deduction.