People in Alabama who prepare estate plans normally choose immediate family members as beneficiaries. However, many regularly include charitable causes in their final financial arrangements. If you have an organization whose mission is close to your heart, you can create a win-win situation that allows you to plan a charitable gift and benefit from control of the money or assets during your life.
Leaving assets to a nonprofit
Planned giving does not have to be a gift of money straight out of your bank account. You may choose to leave an organization real estate or stocks. You could name the charity as the beneficiary of a life insurance policy or retirement plan account. With this approach, you remain able to collect rents or dividends from assets during your life. In this way, you preserve your financial security while still supporting a good cause after you pass away.
With these goals in mind, you can explore estate plan options that will deliver the most benefits. The right strategies could reduce estate taxes on your heirs and give you an income tax deduction during your life.
Inform your family about planned giving
Your gifts to charity may surprise your heirs. Large gifts left to charities sometimes motivate family members to challenge a will. By letting them know ahead of time about your estate plan, you get a chance to discuss their concerns and reduce the chance of legal battles.
Work with your selected charity
Nonprofit organizations typically have people on staff ready to advise people who want to leave them gifts in their estate plan. When you reach out to an organization, you will learn about what rules it has to follow concerning financial gifts and the best ways to support the charitable mission.