Creating a testamentary charitable donation is one of many ways that a person or family distributes their wealth. Estate planning in Wagoner County is an important ens of life process that’s important to you and yours. In some cases, when a person passes they wish to leave a portion of their estate and assets to charity. According to polls, about 5% of Americans make charitable donations in their wills annually. If you are interested in being one of these 5% of Americans, this article will explain some of the ways in which you can leave a testamentary charitable donation.
Testamentary Charitable Donations
The law provides a person with various options to leave a testamentary
charitable donation when creating their estate plan. The simplest way to gift to a charity is to leave a designated lump sum amount. This will go to the charity for the charity to delegate as it decides. Therefore, you have no control over the asset once it goes to the charity.
However, a different possible way to donate is to earmark or create a trust. This allows you a form of control over how the charity uses the money in the future. Basically, while the charity can accept the money, it must follow the parameters you set out in the documents. As a result, you can be sure the money is going toward a program or specific goal you are passionate about.
SEE OUR WAGONER WILLS ATTORNEY BLOG POST FOR MORE INFORMATIN ABOUT DRAFTING A WILL.
In some cases, depending on the financial status of your family, you may create a family foundation. Take for example the Zarrow Family Foundations of Tulsa. The Zarrow Family Foundation focuses on mental health and children. They meet approximately four times a year to vote on monetary grants to community projects in this subject area. If you are a wealthy individual, you could provide a family foundation structure to also grant to programs in an area you find in need. This will separate the assets entirely from your estate, which decreases the taxable amount of the estate.
Testamentary Charitable Donation Plan
Once you decide how you want to move forward with creating a testamentary charitable donation, you must put it in writing. This is vitally important. You can put the plan in writing under a last will and testament or in a trust to become effective upon your death. It is necessary to designate amounts, beneficiaries, and the specific names of the charity you wish to donate to in these documents. Otherwise, the opportunity to leave a testamentary charitable donation may escape you.
Estate Planning Attorneys
Creating a testamentary charitable donation doesn’t have to be so difficult. If you are considering a testamentary charitable donation, we encourage you to hire an estate planning attorney from Wagoner County. Estate Attorneys can help ensure your will and trusts are set up properly and according to your wishes. This will give you peace of mind moving forward that your legacy can delegate as you want it to.
