A large part of planning an estate is about deciding what kind of legacy you would like to leave after your lifetime. While it is likely that you will want to leave a large portion of your assets to your loved ones, you may also want to consider helping a charity that is close to your heart.
It is not true that you need to be an extremely high earner in order to benefit charities at the end of your life. Even small portions of your estate will be highly appreciated by charities, and this act of kindness may inspire your loved ones to continue contributing to the charity in the future. If you are considering making a charitable contribution at the end of your life, you may want to consider setting up a charitable trust in order to do this effectively.
How can a charitable trust benefit my estate plan?
Setting up a charitable trust can be one of the most efficient and lucrative ways to give back at the end of your life. This is because it can help you to legally avoid taxes, enabling more of your funds to be awarded to the charity in question. Depending on your situation, you may be able to benefit from an income tax deduction and from avoiding capital gains tax.
There are many different types of charitable trusts to choose from, and they can be used to also provide an income for a noncharitable beneficiary in addition.
If you are considering leaving some of your assets to charity, it is a good idea to find out more about the benefits of charitable trusts.