How a Donation in Your Will Can Benefit You AND Your Family
By Will Power
The idea of leaving a charitable gift in your Will might have you wondering: why would I leave a gift to charity in my Will when I have my family to take care of?
Fair question! No one wants to leave their children, grandchildren and other loved ones without enough resources to sustain themselves. We all want to make sure that we’ve done what we can to help our loved ones thrive after we’re gone.
Of course you’ll want to name your nearest and dearest as beneficiaries in your Will, and have peace of mind that they’re getting the bulk of your estate. But what if you could do “better” with your Will? If you knew you could leave a meaningful contribution to your cause, while still supporting your family, wouldn’t that be the best of all worlds?
Think about it in terms of percentages
It doesn’t have to be a binary choice, you can support your family and the causes you care about. Think about what a small percentage of your estate left to charity would look like, while still leaving the majority for loved ones.
Let’s say your estate – your property, any unused savings, etc. – is worth $650,000. Just 5% to charity would be $32,500. Imagine what you could accomplish with a donation that size! And there’s still 95% of your estate for children and grandchildren.
Try our legacy calculator to find out for yourself – you might be surprised by the results.
Don’t forget the tax benefits!
Your estate is likely going to be hit with one big tax bill when you pass. You might think that these taxes are inevitable, but in reality, you have a choice. You can redirect funds that would have otherwise been paid in taxes to a charity instead.
Put another way, when you leave a gift in your Will to charity, your estate will get a charitable tax credit that can help pay down that big tax bill.
Let’s take that same estate of $650,000. If you wanted to leave 5% of your estate to charity (a $32,500 donation), your estate would get about a 2.5% reduction in taxes (equivalent to $16,250).
Speak to an advisor who can help you maximize the tax benefits of your charitable giving. You can find financial advisors on our website, many who offer free consultations.
A beautiful legacy for family to rally around
Taking care of family is about more than making sure they have the financial resources they need. How will they feel after you’re gone, and is there something you can do to help ease the pain of your passing?
A charitable gift in your Will can be a beacon of positivity during a difficult time for your loved ones. It can be something that they rally around, and use to celebrate your life and what you stood for.
It can also be the start of a legacy that inspires your children, grandchildren, and future generations to give back to the world around them. You can read about how one couple involved their daughters in crafting the donation they left in their Will.
It’s up to you to shape the legacy you want. But armed with the knowledge that you can support your family, support your cause, and the benefits of doing both, what decision will you take?
