If you’re like many Americans, estate planning may be on the backburner. Perhaps you created a will after your kids were born, but now they’re grown, your assets have grown, and you’re long overdue for an update.
You’re not alone. Less than half of Americans have a will, and fewer still have one that’s up to date.
Why consider charitable giving?
While revisiting your estate plan, it’s wise to also consider your charitable giving. There are countless reasons to include charities in your estate plan. Beyond the tax advantages, you can provide for causes that are close to your heart and feel good about leaving a legacy of giving.
Charitable bequests are a meaningful reflection of your values and priorities. By establishing a legacy that lasts far beyond your lifetime, you can enrich your life today.
How to go about it
The decision of whether to include charitable giving in your estate plan is an important one. How you go about leaving that legacy is equally important.
With the recent Tax Act’s increase in the estate tax threshold to the ballpark of $11 million ($22 million for couples), far fewer estates are subject to federal estate taxes. Still, the thresholds for most state-level estate taxes are much lower, and charitable giving can provide other tax advantages if done strategically.