Winston Churchill once said, “We make a living by what we get, but we make a life by what we give.” Being charitable takes many forms. When it comes to estate planning and planned giving, it bridges the gap between controlling your wealth while alive and helping preferred charities when you die.
There is no lack of charitable institutions in need of donations from generous individuals. Many potential donors with the ability to provide much-needed funding can make it part of an estate plan via planned giving. This strategy could establish a legacy long after you’re gone.
Maintaining security for future needs
You should know that the process can be done without fear of depleting assets that would go to loved ones, a common fear that many contemplating estate planning feel. Having all the information necessary can keep you financially secure while providing for others via charities.
Studies reveal that more than 90 percent of American wealth is in the form of non-cash assets that include:
- Retirement investments
- Real estate
- Life insurance
- Privately-held stock
- Business interests
An in-depth process
Planning is still possible based on your goals. It requires an in-depth look at future financial needs and what is needed until life ends. Cash is not necessary when supporting what you consider a worthy cause. The assets listed above can still be designated to a favorite charity while generating income simultaneously. With the plan in place, income tax deductions are possible while avoiding capital gains taxes and estate tax savings.
Communicating with heirs is of paramount importance as well. Help them understand the decisions and overall process they will eventually face. Not having the conversation can create chaos that rips apart the tightest of family bonds.