Philanthropy has a special place in Americans’ hearts. Last year, over 499.33 billion dollars and 8.7 billion hours of time were given to charitable organizations. Philanthropy also has a special place in financial planning. At Client 1st, many of our clients come to us hoping to develop a well-planned strategy to give back to their community throughout their lives. This can be done through charitable giving, cash, non-cash donations, or volunteer work. Many people don’t realize that there is an intersection between charitable giving and estate planning. With an estate plan, you can continue to give back to your community even after you pass.
Estate planning is often a neglected part of financial planning. In fact, recent studies have found that 67% of Americans do not have an estate plan set up. While some share that they just haven’t gotten around to it, others believe that they don’t have enough assets to pass on to their loved ones. That being said, estate planning is not about having a ton of money; It is about choosing where the money you have goes.
Making the choice to include charitable gifts in your estate plan offers many benefits. You may be able to minimize income taxes through strategies like a Charitable Remainder Trust. Additionally, you can involve your family members in causes that are meaningful to you. Children whose parents talk to them about charitable giving are proven to be 20% more likely to give to charity than those whose parents don't discuss it. Your family may be inspired to carry on your legacy and devote their time and money to an important cause by including charitable giving in your estate plan.
That being said, charitable giving does not have to begin with an estate plan. Throughout your life, you may come across different organizations that are meaningful to you. From children’s charities to human rights campaigns, the possibilities are endless. Find an organization that you connect with, and begin with a donation or a single volunteer shift. Your impact can begin today and, with an estate, last for generations to come. Interested in learning more? Click here.