Many financially stable individuals aim to leave a charitable legacy, but the process can be confusing. Not everyone understands how to leave assets to a charity organization and whether it’s even allowed by law or not. 

Also, if nominating a charity organization as a beneficiary of the entire estate or a specific part of the estate is legal, what are the best ways? Should you make a Will or a Trust, or are there other safer options?

Don’t worry—this article is here to help. We’ll answer what are the best ways to give to charity through estate planning and address any legal concerns you may have. So, let’s get into the details and find out how you can do estate planning for good! 

Can You Leave Your Estate For Charitable Work?

Yes, you can leave your estate (liquid and non-liquid assets) for charitable work, and it’s completely legal. It’s up to you whether you want to leave all the estate or a specific part like some assets or money as long as you follow the proper legal process. 

It’s important to hire an estate planner for this process. They can guide you about the complexities of estate planning and ensure that your charitable intentions are carried out according to your wishes.

You can also read the charity methods for estate we’ve mentioned below. We’ve discussed the top five methods that can be used to leave the estate to a charity organization, which include options like trust, charitable rollover, last will, and so forth.  

1. Create A Trust

The best option you’ve to leave a charitable legacy is by using the irrevocable Trust. The assets you transfer in the name of Trust will become the property of the Trust, not yours, which means they can easily bypass the long probate process and remain untaxed. 

You can also set specific rules and conditions for asset distribution or administration. Just make sure to communicate with a representative from the organization beforehand to ensure your donation aligns with their needs and requirements.

2. Charitable Rollover 

Another option for charity is the Charitable Rollover. It’s a permanent provision that means a person whose age is 70.5 years or older can donate up to $100,000 per year from the Individual Retirement Accounts (IRAs) to the eligible charity organization without paying taxes. 

For married couples, the limit exceeds up to $200,000 ($100,000 for each spouse) per year. Once you’ve donated, you should get a written acknowledgment that includes the date, donation amount, and the benefits you get before filing tax returns. 

3. Using Last Will & Testament 

Will is typically considered to distribute the estate to the family members. Little did everyone know it can also be used to leave a charitable legacy (any assets) for an organization following a simple process. 

Simply contact your Last Will & Testament lawyer and request to include a bequest for the charity. A bequest means giving a gift of assets such as stocks, jewelry, or money up to $18,000 to a recipient. If you wish to give more, you may be subject to the Federal Gift Tax.

4. Private Foundation 

Establishing a private foundation is also an efficient method for donating from the estate. A private foundation is an organization created with the specific aim of aiding people who need a helping hand. 

The individual starting the foundation contributes assets, such as money or property  for charitable activities. These donations can be used to fund educational programs, support women, help students with scholarships, or anything that align with organization mission.  

5. Gift Appreciated Stock

If you’ve stock that has grown in value, gifting it directly to a charity organization is the best way not only for charity but also for gaining tax advantages. To donate the stock, first contact the organization to find out whether they have a brokerage account or not. 

Upon receiving the information on the brokerage account, you can proceed with the further steps. Contact the broker and tell them you want to donate your stock, and they’ll initiate the transfer process. 

Give Charity Through Estate Planning: Final Words

We’ve outlined the best ways to charity through estate planning. From establishing a Trust to utilizing charitable rollovers, drafting a Will, forming a private foundation, and donating appreciated stock, there are various options to suit your preferences.

If you’re uncertain about the best approach or need detailed guidance, our estate planning lawyers are here to help. You can take advantage of a free consultation by visiting our website and filling out the form.