Charities and Estate Planning
Do you want part of your estate to go to specific charities after your death? Many people wish to leave money to charitable causes in their wills. You can tell your spouse or the person who inherits your assets what you want done, but that’s not a foolproof plan. They might not fully understand what your wishes. It’s important to do proper estate planning to ensure that your money is used the way you wish after you pass. An attorney can help you plan for the appropriate distribution of your assets.
Most people know that making a will is important, but good estate planning sometimes requires more complex paperwork. Estate planning involves evaluating your assets and deciding on the best way to distribute them to beneficiaries. If you want to leave a substantial amount to a charity, your attorney may recommend a charitable trust. There are a wide variety of choices when it comes to charitable trusts. It’s important to work with someone who understands all the options before you commit your financial resources.
What are the advantages of a charitable trust? First, they can be set up in a number of ways. Some trusts allow you to make payments from the trust while you are still alive. Then, at the time of your death, the remainder can be transferred to the charity. Your attorney can set up the trust so that the charity receives annual payments based on a percentage of asset values. Payments can be fixed or unfixed, depending on the structure of the trust.
Many people include trusts as a part of their estate planning. The trust can provide tax advantages for both you and the charity. A qualified attorney can help you structure the trust so that it provides the appropriate benefits for both you and the recipient. You need to make many decisions when setting up a charitable trust and it’s easy to make mistakes if you don’t understand the process. A qualified attorney should discuss your goals and help you with the details involved in estate planning. This way, you’ll understand how and when your assets will be distributed.