How to Make Charitable Giving Part of Your Estate Plan

When developing your estate plan, you can do well by doing good. Leaving money to charity can give you a sense of personal satisfaction, and it can save you money in taxes. Here are some ways you can make charitable giving part of your estate plan:

Make an Outright Bequest in Your Will

The easiest and most direct way to make a charitable gift is by an outright bequest of cash in your will. Making an outright bequest requires only a short paragraph in your will that names the charitable beneficiary and states the amount of your gift.

Make a Charity the Beneficiary of an IRA or Retirement Plan

If you have funds in an IRA or employer-sponsored retirement plan, you can name your favorite charity as a beneficiary. Naming a charity as beneficiary can provide double tax savings. First, the charitable gift will be deductible for estate tax purposes. Second, the charity will not have to pay any income tax on the funds it receives.

Use a Charitable Trust

Another way for you to make charitable gifts is to create a charitable trust. There are two types.

A charitable lead trust pays income to your chosen charity for a certain timeframe after your death. Once that period is up, the trust principal passes to your family members or other heirs.

A charitable remainder trust is the mirror image of the charitable lead trust. Trust income is payable to your family members or other heirs for a period of years after your death or for the lifetime of one or more beneficiaries. Then, the principal goes to your favorite charity.

Note: There are costs and expenses associated with the creation of these legal instruments.

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Article prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019; November 2019

RBFCU Investments Group LLC is a wholly-owned subsidiary of RBFCU Services LLC. RBFCU Services LLC is affiliated with Randolph-Brooks Federal Credit Union (RBFCU). Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Trust services available through Members Trust Company, a federal thrift regulated by the Office of the Comptroller of the Currency. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. FR-2764118.1-1019-1121