In putting together your will, decisions relative to how you're going to divide your assets can be difficult. You may want to be sure to provide for your spouse or your children, you may have close relatives or loyal friends that you want to leave something to or if you're a business owner you may even want to incorporate a way to reward long-term employees.All of these are common and relatively simple ways to disperse any money and property you may have but you may be unsure of what to do if you have a school or other organization that you want to leave something to. That's where charitable planning can come into play.
What is charitable planning?
Simply stated charitable planning is what occurs when you make the decision to give all or part of your assets to anorganization that accepts donations. This can be a charity, a school, a hospital, or a religious organization. In working withyour estate planner you can designate what you would like to leave them, any terms and stipulations that must be met for thegift to be received or relative to how it will be dispersed and make decisions about whether or not it will be a one time orrecurring gift. Keep in mind that the nuances of this can be complex and a good estate planner will let you know whether ornot what you want is feasible before setting any plans in motion.
Why you might want to consider it.
The reasons you may want to consider charitable planning are the same as the reasons that you'll ultimately name anybeneficiaries, chances are that you want to help secure the financial future of the organization or program or you simply wantto leave them something in your memory. Additionally, charitable planning can provide you with gift, income, and estate taxbenefits.
What to consider before you get started
Charitable planning is more complex than simply naming a beneficiary. There are important steps that you have totake and considerations that need to be made about the type of charitable planning that will work best for you.
First, you need to ask yourself three key questions:
What's your intent? Why you want to give a gift to a particular organization and what effect you hope it will have? Inbeing able to answer this question clearly and concisely you'll provide your estate planner with a valuable tool in terms ofhelping you proceed.
Will the organization accept your gift? You may be thinking that this is a dumb question, after all who's going to sayno to a gift but there's precedent for refusal that has been set. You can't force someone to accept your charity and so you need toseriously consider whether or not the organization you're looking to help will want help from you. If you're unsure that theywill there are other options available to you, the simplest one is to find another organization but if you're set on one that maynot be as receptive have a conversation with your estate planner about the possibility of an anonymous gift. Anonymity mayprove a bit more complex to execute but it could serve as a viable solution.
What time frame are you considering? The timing of your gift is an important factor for you to consider. Are youplanning on a one-time bequest or something that will recur? If you're planning on a recurring gift you need to ensure thatthe money for that is protected. An estate planner can help you consider the best options for this.
The Presser Law Firm, P.A. can integrate an Asset Protection Plan with your existing Entities and Estate Plan or work with you to create a new one.
Contact us today for a complimentary preliminary consultation regarding your Asset Protection options.
The Presser Law Firm P.A.
6199 N. Federal Highway, Boca Raton FL 33487
(800) 999-9992 or e-mail firstname.lastname@example.org