How to Rock #GivingTuesday

Today is referred to by many as #givingtuesday, and your inbox has likely seen an increase in emails from charities soliciting donations.  Most people who give to charity today will do so by writing a check or making a donation with a credit card.  But did you know that there are a variety of ways to give through your estate plan?

You can give to charity with your will by making a charitable bequest.  A bequest can be general in nature (e.g., “I give $5,000 to Augustine Preparatory Academy”), or the bequest can contain specific direction (e.g., “I give $5,000 to Augustine Preparatory Academy for the purpose of providing scholarships for families of limited means.”).  The gift can be identified in terms of a dollar amount, or as a percentage of the estate.

You can also give by using various trusts.  One example is the Charitable Remainder Trust, a trust that allows for fixed-percentage payments to a beneficiary during the beneficiary’s life (for up to 20 years).  When the fixed-percentage payments are terminated, the trust assets are transferred to, or used for, a qualified charity.  Another example is the Charitable Lead Trust, which provides regular payments to the charitable organization, and later returns the remaining trust assets to the donor or other person(s) designated by the donor.  Such trusts are often accompanied by tax advantages.    

However you choose to give, it’s the act of giving that matters most.  “It is more blessed to give than to receive.”