How To Ensure Your Charitable Wishes Are Honored In Your Estate Plan

When creating an estate plan, many individuals want to incorporate charitable giving as part of their legacy. Whether you want to support a specific cause, donate to your favorite charity, or create a lasting impact in your community, including charitable contributions in your estate plan can help ensure your wishes are fulfilled. To make sure your charitable intentions are honored, it’s important to take certain steps to protect your plan. The attorneys at Bosshard Parke are here to help guide you through the process of ensuring your charitable giving is carried out according to your wishes.

1. Clearly Define Your Charitable Intentions

The first step in ensuring your charitable wishes are honored is to clearly define them in your estate planning documents. Being specific is crucial to avoid any misunderstandings or disputes after you pass. Consider these elements when defining your charitable goals:

• Choose Your Beneficiaries: Decide which organizations or causes you want to support. Make sure to list the full legal names of charities to avoid any ambiguity.
• Specify Donation Amounts: Clarify the amount or percentage of your estate that you want to go to each charitable organization.
• Purpose of the Donation: If you want your donation to be used for a specific purpose, such as funding a scholarship or building a new facility, outline these intentions explicitly.

2. Select Reliable Executors And Trustees

Selecting the right executor or trustee is crucial to ensuring that your charitable intentions are honored. Executors and trustees are responsible for managing and distributing your assets, and they play a key role in ensuring your charitable donations are carried out.

• Choose Someone Trustworthy: Select an executor or trustee who is reliable, honest, and capable of managing financial and legal matters.
• Experience Matters: If possible, choose someone with experience in estate administration or someone who understands your charitable values.
• Consider a Professional Executor or Trustee: If you’re concerned about potential conflicts of interest or the complexity of your estate, consider appointing a professional fiduciary, such as an attorney or financial institution, to serve as the executor or trustee.

3. Incorporate Charitable Trusts Into Your Plan

One of the most effective ways to ensure your charitable wishes are honored is by establishing a charitable trust. A charitable trust can provide a structured way to donate to your chosen causes while also offering tax benefits to your estate.

• Charitable Remainder Trust (CRT): A CRT allows you to leave assets to a charity while also providing income to your beneficiaries during their lifetimes. After the income period ends, the remaining assets are donated to the designated charity.
• Charitable Lead Trust (CLT): In a CLT, a portion of your estate is donated to a charity for a set period, after which the remaining assets are passed on to your beneficiaries. This trust structure can help minimize estate taxes.

4. Consider Using Donor-Advised Funds

A donor-advised fund (DAF) is another vehicle to ensure your charitable giving intentions are carried out. It allows you to make a tax-deductible donation to a fund that you control, and you can advise how the funds are distributed to charities over time.

• Flexibility: A DAF allows you to choose which charities receive funds after your passing, giving your heirs the opportunity to support causes they believe align with your wishes.
• Tax Benefits: Contributions to DAFs offer immediate tax deductions, and the funds can grow tax-free, allowing for more significant future donations.

5. Keep Your Estate Plan Updated

Estate plans are not static and should be reviewed regularly, especially after major life changes such as marriage, divorce, or the birth of a child. If your charitable giving goals evolve over time, make sure to update your estate plan to reflect those changes.

• Amend Your Plan as Needed: If you establish a new relationship with a charity or decide to support different causes, ensure your estate plan is amended to reflect those new goals.
• Revisit Beneficiaries: Ensure that your charitable beneficiaries are still active organizations and that they are still aligned with your intentions.

6. Communicate With Your Family

While it may be uncomfortable to discuss your estate plan with family members, open communication can prevent future disputes and ensure that your loved ones understand and respect your charitable goals.

• Explain Your Intentions: Make sure your family understands why charitable giving is important to you and why you’ve chosen certain organizations to support.
• Address Potential Concerns: If family members have concerns about how your estate will be divided, addressing these issues early can help minimize conflicts and ensure that your charitable wishes are carried out smoothly.

7. Work With An Estate Planning Attorney

Navigating the complexities of charitable giving in your estate plan can be overwhelming, especially when it comes to legal and tax considerations. Working with an experienced estate planning attorney is essential to ensuring that your charitable intentions are honored.

• Legal Compliance: An attorney can ensure that your estate plan complies with Wisconsin law and that your charitable contributions are structured in a way that maximizes their impact.
• Tailored Solutions: Estate planning attorneys can help you tailor your charitable giving strategy to meet your specific needs, whether that includes creating trusts, donor-advised funds, or other vehicles.

Conclusion

Incorporating charitable giving into your estate plan is a powerful way to leave a lasting legacy and make a positive impact on the causes you care about. By clearly defining your intentions, choosing trustworthy executors and trustees, and using the appropriate legal tools, you can ensure that your charitable goals are honored after your passing.

At Bosshard Parke in La Crosse and Sparta, Wisconsin, our experienced estate planning attorneys are here to guide you through the process and help you create a comprehensive plan that reflects your values. Contact us today to schedule a consultation.

Disclaimer: This article is for informational purposes only and should not be considered legal advice. For personalized guidance, please consult with a qualified estate planning attorney at Bosshard Parke.