Charitable giving through your estate plan is a wonderful way to leave a meaningful legacy. There are plenty of good ways to leave money to your favorite causes and at the same time provide for your family.

Take a minute to think of all the people, causes, places, communities and organizations that are near and dear to your hearts. Now think about your life without them. Sad and hard to believe, we know! Let’s talk about being charitable.

To help with honoring and supporting your favorite causes through holiday gifting and estate planning, here are three tips and strategies to charitably give.

So without further ado, we present:

Tip #1: Donate Through Your Will

One way to leave a charitable donation is through your will. The amount you give won’t decrease your income taxes, but it could reduce your taxable estate, possibly increasing the amount you’ll be able to leave your heirs.

Tip # 2: Donate Through Retirement Assets

Donate your retirement assets. This can be done by designating a charity as the beneficiary of your account. Charities are exempt from both income and estate taxes so it can receive 100% of the account’s value. You can leave non-retirement assets to your children, which don’t have the same income tax burden.

Tip # 3: Split Interest Gift

Consider a split-interest gift. Often referred to as a gift that gives back, split-interest gifts can be an integral part of your overall financial plan. This is done by donating some assets to a charity at the same time retaining some of the benefits of holding those assets. The donor opens and funds a trust in the charity’s name and receives a charitable income tax deduction at the time of the transfer. Opening a trust allows the donor to retain some rights to the property and also reduces the value of his or her taxable estate.

Upcoming Philanthropy Events:

*Minnesota celebrates Give to the Max Day Thursday, November 20th.  A 24-hour window of opportunity to give to the max to your favorite charities and causes all while cheering on and tracking results!

If you have questions about ways you can be charitable through estate planning, we would be happy to help. Call us at (651) 337-1919 or email brett@stcroixadvisors.com.