Legacy of Giving: Charitable Inclusions in Estate Planning

Introduction to Charitable Giving and Estate Planning

Charitable contributions, especially during the holiday season, hold significant importance in many people's lives. At Bethel Law, we recognize the value of integrating charitable giving into estate planning. This article delves into how you can include charitable donations in your estate plan, ensuring your legacy continues to benefit the community.

Traditional Approach to Charitable Giving

Traditionally, charitable giving involves direct donations to chosen charities. For instance, a donation of $500 to a charity not only supports their mission but also offers a tax advantage for the donor in the year of the donation. This straightforward method is well-known and widely practiced.

Charitable Giving Through Estate Planning

Estate planning offers a structured approach to charitable giving. There are two main pathways: incorporating charities in the distribution of a typical revocable living trust or establishing specialized charitable trusts for ongoing contributions and long-term tax benefits.

1. Revocable Living Trusts: In this method, charities are designated as beneficiaries within the trust. For example, allocating a percentage or a fixed amount to a charity. It’s important to specify this in the trust document to ensure tax benefits are realized.

2. Charitable Trusts: Charitable trusts are more complex and require ongoing management. They come in two forms: Charitable Lead Trusts and Charitable Remainder Trusts. These trusts serve specialized roles in charitable giving and differ based on whether the charity is a principal or income beneficiary.

Highlighted Charity: Inland Empire Ronald McDonald House

We would like to proudly highlight the Inland Empire Ronald McDonald House. This organization supports families with hospitalized children, offering a 'home away from home.' Their services include accommodation, food, and amenities for families in need. We encourage considering this admirable charity for direct or estate-planned contributions.

Your Role in Charitable Giving

Charitable giving, whether through traditional means or integrated into estate planning, represents a powerful way to make a lasting impact. We at Bethel Law are here to guide you through this journey, ensuring your contributions make a meaningful difference.

Learn more: Charitable Trusts and your Estate Plan – Presentation by Dale Bethel

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