Including charitable giving in your estate plan is a meaningful way to support causes you care about. In Virginia, there are several simple ways to leave a lasting impact with your estate.
Whether you want to give to a local nonprofit or a national organization, your estate plan can reflect your values and help others even after you’re gone. Here are some of the most common ways to give to charity in your estate plan.
Name a charity in your will or trust
One of the most common ways to give is by naming a charity in your will or revocable living trust. You can leave a specific dollar amount, a percentage of your estate or what’s left after other gifts are made. This is called a bequest. It’s simple to update and allows you to keep full control of your assets during your lifetime.
Designate a charity as a beneficiary
You can name a charity as the beneficiary of your retirement account, life insurance policy or investment account. This avoids probate and can offer tax benefits. For example, leaving an IRA to a qualified charity can help reduce estate taxes and avoid income taxes that would apply if the account went to an individual.
Set up a charitable trust
For larger gifts, you may want to consider a charitable remainder trust or a charitable lead trust. These options can provide income to you or your loved ones for a set time, with the remainder going to a charity. They are more complex but offer unique tax and planning benefits.
Charitable giving in an estate plan is not just for the wealthy. With the right tools, anyone can support a cause they believe in. Seeking legal guidance will help you create a plan that aligns with your values.
