Legacy Planning: Leaving Money to Charity in Your Will

At the Hailey-Petty Law Firm, PLLC, we are not only dedicated to our clients, but also to supporting our local Austin and San Antonio communities. One event, in particular, that we sponsor is the Deerpark Ranger Run 5K, which is taking place on September 24th. All the funds raised will go directly to the Deerpark Middle School, to help teachers, staff, and students. Charitable giving, whether it’s monetary or the giving of our time, is an important part of who we are as a local business.

Charitable giving or legacy planning is also something we assist our clients with when it comes to their estate planning. Many individuals are passionate about a particular charity or cause and want to be able to leave a monetary donation or asset as part of their wishes after death. This act comes with many benefits, not only for the charity you leave a bequest to, but it can also benefit your estate.

Giving to charity at your death is an easy process that involves leaving a bequest in your will or revocable trust. A bequest is a sentence in either your will or trust that states the amount or asset you would like to leave, the identification of the recipient to receive the amount or asset, and the purpose for which you would like the recipient to use the donation. A charitable bequest can be left to a charity, non-profit organization, trust, or foundation.

As part of your will or trust, you will name one or more charities or other organizations which you would like to leave your charitable gift. If your gift is for an organization’s general use, you don’t need to provide any additional details. However, if your gift is for a specific purpose, it is best to contact the organization directly. This will allow you to confirm that they can accept the gift for the purpose you have in mind.

Making charitable giving part of your estate planning doesn’t just make you a good person; it also makes you a smart financial planner. Charitable bequests are eligible for an estate tax deduction, which will reduce estate taxes. Since tax laws are very complicated and change frequently, it is best to consult with an estate planning attorney and review your will or trust regularly to ensure you remain eligible for the maximum amount of tax benefits.

If you are thinking about making charitable giving part of your estate plan, or even if you just want to come out and support a great cause, make sure to visit the Hailey-Patty Law Firm, PLLC booth at the Deerpark Ranger Run 5K on September 24, 2022. If you can’t make the event, you can always reach out and contact our office. We would be more than happy to answer any questions you have regarding estate planning.