The most common beneficiaries of estate plans include spouses, children, and family members. However, charities and nonprofits can also be named as a beneficiary in your estate plan. A beneficiary can be a person or entity that you wish for all or part of your money to transfer to. There are several ways that you can transfer money to your beneficiaries at death. You can transfer money through your will, a living trust, or naming the beneficiary on bank accounts and retirement accounts.
You may have a charity or nonprofit that you align with and want to donate money to after you pass. That may include a church, school, or a charity in your community. Whatever the charity may be, you can add one or more charities as a beneficiary of your estate plan.
The first thing you need to do is to identify the charity of your choice and determine your gift amount. You can give the charity a lump sum of money, stock, property which you own, life insurance, or IRAs or other retirement accounts. You can also create a charitable remainder trust to give money to the charity during your lifetime. Depending on how you plan to transfer money to the charity, you can structure the money so that the charity receives a certain amount of money per year, over the course of several years.
Giving to a charity may also have several tax implications to look out for. It is important to meet with your accountant and attorney to discuss including a charity in your estate plan. Whether you plan on giving through a charitable remainder trust or a living trust, your attorney can help you better understand what is the best option for your goals and your estate.
At Sullivan Law, we offer estate planning packages at a flat and reasonable fee. We also offer free consultations to discuss what your needs are, what you would like to do, and how that can be best accomplished. Everyone’s needs are different, and your wishes should be clearly listed and understood.
Call us at 248.917.1351 or email at asullivan@sullivanlawonline.com to schedule your free consultation today and start an estate plan for your small business. We look forward to working with you!