Giving to charity is a popular way for people in Florida to show their support for a cause. When incorporating charitable giving into an estate plan, there are several important considerations.
The first step is to choose a charity. It is important for a person who is in the position to give back to consider how they want to be remembered, what they are concerned about for future generations and what issues affecting their community concern them the most.
Next, it is important to select which assets to donate. The most traditional way to give to charity is to donate cash. Some charities accept other types of donations such as real estate or artwork. Research may be required to determine what types of gifts a charity accepts since some are restricted to cash-only donations.
Choosing what method to use to give to charity is another essential consideration. Failing to choose the best option can result in losing out on available tax benefits. Charitable trusts and private foundations are good tools to incorporate in an estate plan to maintain control over assets and to minimize transfer taxes.
An attorney experienced in estate planning may be able to assist those who are considering incorporating charitable giving into their estate plan. There are many different types of trusts that can be utilized to save money on taxes and preserve income from the estate for the benefit of the grantor for the remainder of his or her life. The method for giving to charity and type of legal instrument used will depend on the goals of the person making the gift as well as the type of property in the estate. An attorney may be able to help a person decide which option makes sense based on tax consequences, what types of assets they own and what they want to happen to their estate after their death.