Charities and Estate Planning

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

So you've decided to include a charity in your estate plan. While most people probably think about "who" they are going to name in their will rather than "what" or "where," you may actually be surprised at how many do choose to leave their assets or make a donation to charities too.

How it works:

Giving a gift to charities upon your passing is actually pretty simple, and there are quite a few ways to do it! For starters, you may decide that you would like one or all of your retirement accounts to be presented to the charity of your choice. In this case, all you'll need to do is name the charity as your beneficiary on them.

On the other hand, you can also take advantage of Charitable Lead Trusts, which ultimately reduce your current taxable income. In this approach, part of the trust's income is donated directly to a charity, with the rest eventually landing in the hands of the trust's beneficiaries. While this method absolutely benefits the charity of your choosing, it can also benefit beneficiaries as they will likely wind up with lower estate or gift taxes when the time comes.

Finally, a third strategy would be to simply put in writing how much you would like a charity to receive once you pass. Potentially one of the easiest ways to give a gift to charities, all you generally have to do is list the charity's name(s) and what portion of your assets you want them to receive.

Do you have a charity that you are considering for your estate plan? If you know that you want part of your assets to be donated to a charity, don't forget to look into them first to see if they have specific policies or procedures surrounding this type of action. Then, contact American Investment Planners LLC to get started on putting it all together! To make an appointment to meet with one of our financial advisors, please call (516) 932-5130.