Leaving money to charity can not only help your estate avoid taxes, by reducing the size of the estate, but also enjoy a deduction in some cases. It also helps a worthy charity grow and provide help to those that are helped by that charity. Which charity is a personal decision, that no one else should interfere with, but if you don’t have a favorite charity, the list of top charities, based upon giving efficiency, might help you.
Leaving money to charity – The Benefits of A Charitable Bequest
Leaving money to charity has the following benefits for you and your loved ones:
- Leaving money to charity will receive an estate tax charitable deduction.
- Leaving money to charity will lessen the burden of taxes on your family.
- Leaving money to charity will leave a lasting legacy.
How is Leaving Money to Charity Done through a Bequest?
A bequest is one of the easiest gifts to make. With the help of our Orange County Estate Planning Lawyers, you can include language in your will or trust specifying a gift to be made to family, friends or the charity of your choice as part of your estate plan.
2. Bequest of a percent of the estate
3. Contingent Bequest
If my brother John Doe survives me, I devise and bequeath 20% of the remainder and residue of property owned at my death, whether real or personal, and wherever located to John Doe. If John Doe does not survive me, then I devise and bequeath 20% of my residuary estate, whether real or personal property and wherever located to [the charity of your choice], or its successor organization, a nonprofit corporation as described in section 170 (c) of the Internal Revenue Code with national headquarters located at [address], to be used for its tax exempt purposes in fighting [purpose of the charity].
4. Restricted Purpose Bequest
I give, devise, bequeath, ___________ (insert dollar amount, item of property or % of residue) to [the charity of your choice], or its successor organization, a nonprofit corporation as described in section 170 (c) of the Internal Revenue Code with national headquarters located at [address], to be used for its tax exempt purposes in fighting [purpose of the charity]. (insert restricted use language here – examples below)
Examples: in the state of California; in Orange County; for research; for community programs; for education programs; for public advocacy; for children’s programs; etc.
Your Bequest Options for Leaving money to charity
A bequest may be made in several ways:
- Gift of a percentage of your estate
- Gift of a specific dollar amount or asset
- Gift from the balance or residue of your estate
Making a Bequest of Your Retirement Assets
A retirement asset, such as an IRA account, makes an excellent bequest to qualified charities. If the IRA were given to your family, much of the value may be lost through estate and income taxes. By designating the charity of your choice, the full value of the gift is transferred tax-free at your death and your estate receives an estate tax charitable deduction.
Contact us Today.
Contact us if you are interested in leaving money to charity through a will or trust as part of your estate plan. We can help you avoid legal problems and help the charity or charities of your choice.