If you are making an estate plan, you do not just have to set aside assets for your relatives and loved ones. You can actually make a plan for supporting charitable causes as well. Charitable planning makes it easy to make regular donations to charity while you are alive and can also ensure that donations from your estate continue to fund worthy causes once you have passed away. A Washtenaw County estate administration attorney from our firm is ready to help you with this.
Who Can Benefit From Charitable Planning?
Charitable planning is a good option for anyone who will end up leaving a sizable estate behind. You expect that you will have enough assets to distribute to beneficiaries, but you do not want to leave all of your wealth to them. Instead, you prefer to leave some money to your loved ones and other assets to charity.
Our estate planning lawyers can look at the amount of money you have and ask more about your plans. When we have the information that we need, we can help you make a plan to continue giving to charities while taking advantage of tax breaks and other benefits.
Can I Use Trusts During Charitable Planning?
Trusts are commonly used for charitable planning. You can establish a trust that will automatically make donations to your favorite charities when an annuity term ends. There are two types of trusts that are useful for this kind of charitable giving.
A charitable remainder trust pays you and your beneficiaries first once an annuity term ends. Then whatever money is left over can be donated to a charity. This can give charitable donations away when you are alive and after you have passed away.
A charitable lead trust functions in a similar way. As its name implies, it pays out to charitable causes first. Then it makes payments to you and your beneficiaries.
Are There Other Tools I Can Use?
A trust is not your only option for charitable planning though. Our lawyers can help you find another method that suits your estate size, how many causes you support, and what percentage of your assets you plan to give away.
In some cases, setting up a family foundation can be a good idea. This foundation can continue to support your favorite causes long after you are gone. You can put a family member you trust in charge and leave behind specific instructions, so you do not have to worry about your wealth being squandered or used inappropriately.
Our lawyers can also help you use your life insurance policy to support charities. If you do not think that another beneficiary needs the money from such a policy, we can help you with the paperwork needed to transfer its payout to a charity that you support.
Talk to Our Legal Team Today
If you want help with charitable planning or any other part of your estate plan, contact Collis, Griffor & Hendra. Our experienced attorneys can make it easy to continue supporting your favorite charities and causes.