Many times, an individual enjoys organizations that enrich the lives of others, save animals and preserve the environment. In order to show their appreciation, they want to name the charitable organization as a beneficiary of their will or other estate plan, such as a trust. When an individual gives to such a beneficiary, the philosophy is that they help to perpetuate the existence of the charitable organization, provide support for the projects the charitable organization promotes, and helps to educate others in the good that the organization creates. Such gifts call for careful planning with the help of your attorney.
Leave a Gift to a Charitable OrganizationAn individual may also be able to designate a contribution or gift to the charitable organization by naming the organization as a beneficiary to a life insurance policy, retirement plans, such as 401K, 403(b), and IRAs, to name a few. If this is something you may want to consider, talk to your attorney and to the manager of the retirement fund to make sure that the process to make such a gift to a charitable organization is done properly.
There are different ways to make a bequest to the charitable organization when creating and drafting your will or trust.
- You may give a bequest of the residuary estate (what is the remainder of the estate) by stating an exact amount or a percentage of the residuary after other gifts.
- Giving a gift of a certain percentage of your entire estate to the charitable organization.
- Give a specific gift amount of money or perhaps an asset of the estate.
- Make the charitable organization a Contingent beneficiary in case another beneficiary does not survive you. For example, “I give $100 dollars to my niece, Azalea, but if she does not survive me to the Charitable Organization.”
Working language for a gift to a charitable organization must include information, such as the type of gift, the charitable organization’s name and address, and for what purpose the gift should be used (to purchase art, general purposes to continue the organization’s mission).