How to Make Charitable Giving Part of Your Estate Plan

With the holidays right around the corner, many of us are thinking of giving back. But have you ever considered making charitable giving as part of your estate plan? If you’re passionate about making a difference after you pass away, here are 3 ways you can include charitable giving into your estate plan.

1. A Gift in Your Will

The most direct way to make a charitable gift is by leaving it in your will. This can be a donation of a specific amount of money, particular assets, or a percentage of your estate.

To do this, simply include a clause in your will stating the specific amount or asset you’d like to donate. This option is beneficial because charitable gifts are tax-deductible, lowering the taxable value of your estate, which reduces estate taxes for your heirs.

2. Donor-Advised Funds

Another option to incorporate charitable giving into your estate plan is with a donor-advised fund (DAF). This option allows you to make an initial contribution, typically a stock or other assets, then the fund is invested and grows overtime.

To set up this fund, you’ll need to work with a financial advisor or charity organization. Then, you can make contributions during your lifetime. DAFs are great because they are flexible and allow you to decide when and how charities will receive your gifts. Additionally, until they are donated, your contributions will grow tax-free!

3. Leveraging Your Life Insurance Policy for Charity

Did you know you can name a charity as your beneficiary? If you have a life insurance policy, naming your charity of choice as your beneficiary is a simple way to leave an impactful gift without draining your assets.

To do this, all you have to do is change your life insurance policy’s beneficiary to the charity of your choice. Life insurance proceeds are usually tax-free, allowing your donations to go further.

Give Back This Season!

Charitable giving is a powerful way to make a lasting impact, and incorporating it into your estate plan is one of the most thoughtful decisions you can make.

Whether it’s through a simple gift in your will, a donor-advised fund, or through your life insurance policy, you have several options for making a difference after you’re gone.

The key is to align your charitable goals with your overall estate planning strategy.

As you think about your legacy, remember that the impact you make through charitable giving can ripple far beyond your lifetime. So, take the time to explore these options and work with your financial and estate planning professionals to create a plan that reflects your values and desires.

Ready to get started? Let’s make sure your legacy of giving is as meaningful as the life you’ve lived. Call Oklahoma attorney, Kevin L. Miller, PC today at (405) 443-5100.