Do you want to give a charitable bequest when you die? Your estate plan can provide for such organizations in a variety of ways. You can give either during your lifetime or at your death. Depending on how your plan is set up, it may also let you receive a stream of income for life, earn higher investment yield, or reduce your capital gains or estate taxes.
The best option is to create a Trust. Inside your trust you can allot a certain percentage or amount of the estate to be given to a specific charity upon your death. For example, you could donate a 10% or $10,000 to the U.S. Department of Veterans Affairs in your Trust. At the time of your death, your trustee would ensure your wishes are full-filled.
A second option is to name the charity as a beneficiary in your life insurance policy. On a pay on death life insurance policy, the charity will be automatically paid once the life insurance company has been notified about your death.
A third option is to name the charity as a beneficiary in an IRA or other qualified retirement plan. As with the life insurance policy, the charity will be automatically paid once the life insurance company has been notified about your death.
These three options provide the best way to give to a charity when you die. All three options will avoid the probate process. Do you have any questions on how to proceed? Call us here at Fighter Law to learn more.
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