Charitable giving and estate planning

Estate planning often involves deciding what assets go to heirs. However, not all distributions must go to relatives and other close beneficiaries. An estate plan may involve charitable giving, directing a little or substantial amount toward good causes. The key point is the will or trust that directs the funding is legal under South Carolina law.

Charitable giving and estate plans

There are many different charitable causes an estate planner may consider when drawing up a last will and testament. Sometimes, people wish to give money during their lifetime but lack the financial means to part with their funds. So, they could consider giving an appropriate amount to charity by bequeathing the funds in a will.

Effective estate planning could ensure that a reasonable amount of money goes toward a charity while leaving adequate amounts to surviving relatives. Carefully reviewing the assets may make the right determinations about how to distribute assets.

Things to consider during estate planning

Those wondering all about planned giving might need to realize that assets given to a charity need not exclusively be cash. The estate planner could direct stocks and other things of value, such as art collections. Surviving relatives may have no need or interest in certain assets or collectibles, so giving the items to charity could be a good idea.

Sometimes, certain assets could be a burden to beneficiaries who are unable to manage them. Donating a house or car to charity might be a wise strategy under some circumstances. Estate planners may benefit from discussing their charitable giving plans with relatives and other potential heirs. Problems could arise during probate when heirs discover things they feel belong to them are going to charities. Communicating plans might avoid such concerning situations.