How to Incorporate Philanthropic Giving into Your Estate Plan

Philanthropy is often considered in estate planning for tax purposes, but it does not have to be. Philanthropic giving can be a great marker for your legacy, and a guiding light for your children and other generations.

The first step is deciding which cause or set of causes is meaningful to you and your family and knowing how many causes or organizations you can afford to donate to. What issues in your community concern you? What do you worry about for future generations? And, how do you wish to be remembered?

Once you and your family realize the causes that are most dear, the next step is to identify the type of assets they you are willing to donate. All organization typically accept cash donations, some more-sophisticated charities can accept other financial and physical assets, such as privately-held securities, real estate and even artwork.

The final step is to identify the method of donation. You can make charitable gifts in your will but you may not realize all of the tax benefits that other methods potentially provide. Donor-advised funds and community foundations allow many options in terms of the assets you can donate and the charities you can support, but you may have to give up part of the control of dictating how your gifts are directed.

No matter your motivations for giving, philanthropy can be simultaneously personally fulfilling and financially beneficial, while allowing you and your family to leave a legacy that reflects your passions, values and priorities.

See Catherine Schnaubelt, How to Incorporate Philanthropic Giving into Your Estate Plan, Forbes, October 11, 2018.