Including philanthropic gifting, also referred to as charitable or legacy gifting, in your estate planning can have several benefits, both personal and financial. Here are some key reasons why it might be a good idea:
- Legacy and Impact: Philanthropic gifts allow you to leave a lasting legacy and make a positive impact on causes or organizations you care about. It’s a way to continue supporting meaningful work beyond your lifetime for generations to come.
- Tax Benefits: Charitable donations can provide significant tax advantages. For example, gifts to qualified charities may reduce the size of your taxable estate, potentially lowering estate taxes. This can be particularly beneficial if you have a large estate.
- Fulfillment and Values: Aligning your estate plan with your values and passions can be deeply fulfilling. It ensures that your wealth supports the causes that matter most to you, reflecting your personal beliefs and priorities.
- Family and Community Engagement: Philanthropy can be a way to engage family members in charitable activities and encourage a culture of giving. It can also strengthen ties with the community by supporting local organizations and initiatives.
- Strategic Giving: By incorporating charitable giving into your estate plan, you can often leverage your resources more effectively. For instance, certain planned giving strategies, like charitable remainder trusts, can provide you with income during your lifetime while benefiting a charity after your death.
- Reducing Estate Size: Reducing the size of your estate through charitable gifts can help in managing the distribution of your assets according to your wishes and can simplify the estate settlement process.
- Public Recognition: In some cases, charitable gifts can lead to public recognition and honors, which can be a source of pride for your family and enhance the visibility of the causes you support.
The Biggers Law Firm’s estate planning attorneys have years of experience in guiding clients considering philanthropic gifting, as well as the acumen required to ensure that charitable contributions are structured in a way that aligns with the client’s overall financial and personal goals.