Giving money to charity is an essential part of many people’s estate plans. It allows you to continue supporting your favorite causes and educational institutions after you pass away. However, rather than just leaving money to a charity in your Will, you might want to consider other options with your estate planning attorney.
One interesting option is a gift annuity. With an annuity, you give money to the charity now and receive the tax benefit for doing so during your lifetime. You then receive an annuity on the funds you gave so you actually get money every year that you can use however you want. It’s a great way to give money to charity and receive a benefit for yourself. You will need to be careful and only use a gift annuity with financially secure charities. If the charity goes bankrupt or disbands, you do not receive an annuity. The tax benefit does not go away however.
Talk to your estate planning attorney about the different ways that you can leave money to charity. You will discover that you have many different options. The best option depends on your circumstances and the charity you want to donate to. Your attorney can help you make the best choice.