Building a Legacy: Structuring Charitable Gifts That Continue Beyond Your Lifetime
Highlights
Charitable giving can extend a personal legacy: Estate planning can direct support to organizations and causes that reflect long-held values.
Different giving tools serve different goals: Wills, trusts, and beneficiary designations can create different timing and tax results.
Family and charitable goals can work together: A plan can provide for loved ones while also reserving assets for charitable purposes.
Regular review keeps the plan current: Financial, family, and charitable priorities can change over time.
Many people want the values that shaped their lives to remain visible after they are gone. Supporting a meaningful cause can make an estate plan reflect both family priorities and beliefs.
The Law Offices of Steven H. Peck helps clients consider charitable giving alongside estate planning, elder law, tax planning, and family goals. An estate planning attorney can help you decide how a gift should fit with inheritances for loved ones.
From its Riverwoods, Illinois, office, the firm serves clients in Cook County, McHenry County, DuPage County, and Lake County. Contact the Law Offices of Steven H. Peck to discuss charitable giving as part of a thoughtful estate plan.
Start With the Cause and Purpose of the Gift
Charitable planning begins with a personal question: what should the gift accomplish? Some people want to support an organization immediately, while others want support to continue for years after death.
A client who wants a one-time bequest can have different needs from someone who wants an income stream to support a charity over a set period. An estate planning firm can connect the purpose of the gift with the documents used to carry it out.
A charitable gift can be made during life, at death, or through a plan that combines both. Timing can affect control, income needs, tax treatment, and when the charity receives support. A lifetime gift lets the donor see the impact of the contribution.
A gift through a will or trust can preserve access to assets during life while directing property to charity later. Attorney Steven H. Peck can discuss how the timing of a gift fits into the client's overall estate plan.
Compare Long-Term Giving Options
There are several ways to leave property to charity. A client should consider how much control is desired, whether family members should receive benefits first, and whether the gift should continue over time.
Common options can include:
A charitable bequest: A will or trust can direct a stated amount, percentage, or specific asset to a charitable organization.
A charitable remainder trust: This irrevocable trust can provide payments to noncharitable beneficiaries before the remaining property passes to charity.
A charitable lead trust: The charitable organization receives payments first, with remaining property later passing to designated noncharitable beneficiaries.
A donor-advised fund: A donor can contribute assets to a sponsoring organization and recommend grants to charities over time.
A beneficiary designation: Certain accounts or policies can name a charitable organization as a beneficiary after the owner's death.
Each option has different legal and tax consequences. An estate planning firm can review how a proposed gift fits with the client's assets and beneficiaries before the client changes documents or account designations.
Consider a Charitable Remainder Trust
A charitable remainder trust can appeal to someone who wants to support a charity while also providing an income stream during life or for a stated period.
According to the Internal Revenue Service, a charitable remainder trust is irrevocable, pays income to at least one living beneficiary for life or for up to 20 years, and transfers the remaining property to one or more qualified U.S. charitable organizations when that payment period ends. The IRS also requires the charitable remainder interest to equal at least 10% of the initial net fair market value of the property contributed to the trust.
These rules make careful drafting and administration important. Tax treatment also depends on the trust terms, the property contributed, the beneficiary arrangement, and current law.
Build a Lasting Legacy With an Estate Planning Firm
Charitable giving can help an estate plan support more than transferring property from one generation to the next. A carefully structured gift can reflect personal values, support a meaningful cause, and remain coordinated with plans for family members and other beneficiaries.
The Law Offices of Steven H. Peck works with clients on estate planning, charitable planning, trusts, and elder law with close attention to each client's priorities. Contact the Law Offices of Steven H. Peck to discuss charitable giving and a lasting legacy.
Frequently Asked Questions
Can a charitable gift be included in a will?
Yes. A will can direct a specific amount, a percentage of the estate, particular property, or another defined gift to a qualifying charitable organization, subject to the estate plan and applicable law.
Can a charitable trust also provide for family members?
Certain charitable trusts can provide payments to noncharitable beneficiaries while also creating a charitable interest. The appropriate structure depends on the client's goals, assets, beneficiaries, and tax considerations.
How can the Law Offices of Steven H. Peck help with charitable planning?
Attorney Steven H. Peck can discuss charitable giving alongside estate planning, tax considerations, trusts, and family goals. He can help clients evaluate available structures and prepare documents that reflect the charitable intentions they want included in their plans.