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Guide for planned giving in California estate plans

On Behalf of | Oct 2, 2023 | estate planning | 0 comments

Planned giving allows California residents to support the charities they care about long after they’re gone. Planned giving is a fundamental part of estate planning for many philanthropists.

Even if you didn’t donate much during your lifetime, planned giving is the chance to get involved with the causes you care about. There are a few steps to set up charitable giving in your estate plan.

Figure out your strategy

There are a few strategies to consider when setting up planned giving. One of the easiest ways of supporting charities in your estate plan is to make them a trust beneficiary.

These charitable trusts will give money directly to the charity without it having to go through probate. You could also designate a charity or nonprofit as the beneficiary on a life insurance policy or similar account.

If you plan to give a lot of money over a long time, you can research other options that give you more control over your giving – such as charitable gift annuities or charitable lead annuity trusts. It’s important to outline your goals before you take that step.

Consider your assets

You might give a lump sum of cash to a nonprofit upon your death. However, charities also accept assets like stocks or mutual funds as donations.

Many nonprofits will also accept gifts of real estate assets or retirement assets. It’s important to know the value of all your assets as you consider planned giving options.

Consult with your family and experts

Planned giving is a very honorable thing to consider as you’re laying out your estate plan. That said, it’s also important to consider your relatives and other presumed beneficiaries of your estate.

Be sure to discuss aspects of your estate plan with your relatives to avoid any confusion or hurt feelings. It’s also essential to ensure that the executor of your estate plan will know how to carry out your planned giving wishes.