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Charitable Bequests

A common aspect of estate planning is charitable giving. There are many different ways in which an individual can provide assets to a charity upon their death. The method and type of assets can vary depending on a person’s goals and their specific facts. For example, you can name the charity as the recipient on your beneficiary designation, such as on a retirement policy or life insurance policy. In addition, you could name the charity(ies) in your will, which will have to be probated, or in your trust. Another method would be to designate the charity(ies) through a Transfer on Death Deed (TODD) for your homestead or other real property.

Another possibility would be to create a charitable interest remainder trust. This type of trust is an irrevocable trust that lets you donate assets to a charity upon your death, but allows you to receive annual income during your lifetime. You can also sell the asset in a charitable remainder trust and avoid paying capital gains.

If you are bequeathing an asset to a charity(ies), other than cash, it is important to make sure that the charity(ies) of your choice will accept a non-cash asset. Not all charities will accept a non-cash asset. Therefore, it is wise to contact the charity about the non-cash asset so that you know your wishes will be followed upon your death.

Spangler and de Stefano, PLLP advises business owners and individuals on charitable giving through their estate planning and business succession planning.

The material contained herein is for informational purposes only, and is not intended to create or constitute an attorney-client relationship between Spangler and de Stefano, PLLP and the reader. The information contained herein is not offered as legal advice and should not be construed as legal advice.