What Kind Of Legacy

We all want to leave a lasting and significant impression on those people that are most dear to us. Planning for the future and considering the legacy you will leave is one of the most effective ways to ensure a lasting impact on the world in which you live.

For many people considering their legacy, ensuring that their family members will be sufficiently cared for is of paramount importance. Making a charitable bequest is one of the easiest ways to guarantee that your legacy endures and that your loved ones will be well cared for in the future.

What Is a Charitable Bequest?

A charitable bequest is a written statement in your will or trust directing a gift be made to a qualified charity as part of the disposition of your estate. A charitable bequest is one of the most flexible estate planning tools because it can be changed at any time. This ability to remain in complete control of your property during life also makes a charitable bequest one of the most popular methods of giving available.

Charitable Bequests & Estate Taxes

A charitable bequest may save estate taxes. Provided that the charitable bequest is properly drafted and is given to a qualified organization, there is an unlimited estate tax charitable deduction. The additional tax advantage of a charitable bequest is that there are no percentage limitations similar to those affecting the income tax charitable deduction.

What Type of Bequest Should You Consider?

Though making a charitable bequest is a flexible and easy way to ensure the impact of your legacy, there are some important things to consider before incorporating a charitable bequest into your estate plan. The property passing by bequest through your will is subject to probate. Also, the amount of your bequest and the type of your bequest will depend on the value of your estate and the specific assets in your estate.

There are several types of charitable bequests. Depending on your needs and objectives, one type may be better suited for your estate plan than another.

Gift of a specific dollar amount

Gift of a percentage of your estate

Gift of a specific asset

Gift of the residue of your estate (the assets that remain in your estate after other bequests, tax and administrative costs have been satisfied)

Property Passing Outside Your Will

Certain types of assets are not subject to the probate process and pass outside the will by beneficiary designation. Non-probate assets are excellent candidates for charitable bequests and may save income and estate taxes. Some common non-probate assets include:

A life insurance policy

An IRA or other retirement account

It is possible to bequeath this type of asset, but you will need to do so by completing a beneficiary designation form. A provision in your will is not sufficient to alter the disposition of those assets at your death.

The Legacy You Leave Behind

The search for significance and the desire to plan for your family’s future may lead you to consider a charitable bequest. This type of gift can help shape the legacy you leave for your loved ones for many years to come.

The professionals that work at the Foundation for Community Care can help you determine the type of charitable bequest that suits your objectives. They will provide you with confidential information that will ensure you get the maximum tax benefits as you shape your legacy for future generations. What kind of legacy will you leave?

For more information on how you can save money on your taxes and leave a legacy in our community, stop by our office at 221 2nd St. NW in Sidney, send us an email at [email protected] or call 406-488-2273. We will be happy to visit with you and provide a confidential, personalized illustration with no obligation. You should always consult your own financial professionals and advisors.