Charitable gift planning, also called estate planning or planned giving, allows clients to support their favorite nonprofit(s) during their lifetime and beyond. Planned giving sometimes has a taboo reputation because it evokes images of death, dying or diverting assets from heirs. However, planning allows clients a wonderful time to reflect on their life accomplishments, values, and the impact they want to have on their community for generations to come.
Within the next 10 years, it is projected that East Texans will transfer over $21 billion in assets between generations. Much of this wealth currently resides in residential homes and farms, closely-held family businesses and other appreciated assets – some of which may be heavily taxed when passed to the next generation.
A planned charitable gift, as part of an overall estate plan, takes into account the client’s needs and those of their loved ones, as well as important charitable interests. Below are the most frequently used planned gifts:
Bequest by Will or Trust
The simplest way to make a lasting gift to the causes that are most important to your client is to make a bequest through a will or trust. By simply including information in your estate planning documents, you can easily establish a charitable fund (or add to an existing fund) at East Texas Communities Foundation that will carry out charitable intentions. The bequest can be for a
specific dollar amount, a percentage of your estate, or specific assets.
Retirement Accounts
Naming ETCF as a beneficiary of your retirement assets, such as an IRA, 401(k), or 403(b), can reduce or eliminate taxes for heirs and make a significant impact on the community and the client’s favorite causes and organizations.
Life Insurance
Life Insurance provides one of the easiest ways to leave a legacy by simply designating ETCF as the beneficiary. Donations of life insurance offer an effective way to meet philanthropic goals without affecting other personal assets intended for heirs to receive. As a bonus, they may allow your client to make a much larger gift than what could have been made during one’s lifetime.
No matter the estate size or tax situation, ETCF is here to work with advisors to create simple and effective ways to ensure continued support for the causes and organizations that your clients care about.
Recent Comments