After your death, you may want to keep your legacy alive along with ensuring that your family is provided for. The State of Florida does not have estate or inheritance taxes. However, the federal government has an estate tax that the IRS may require you to pay. That’s why proactive estate planning can be essential to provide for your loved ones as well as your legacy after you are gone.
Charitable giving is a great option to consider for estate planning. Giving to charities during your lifetime is one way to give back to your community, and it can also help you minimize your estate taxes and continue serving your community after you’ve passed. Beller Law, P.L. and our trusted estate planning lawyer in Jacksonville, FL can help you prepare for your family’s future and your legacy.
Why Is Estate Planning Important?
You have the right to have your estate distributed as you see fit. However, distributing assets after a death can be complicated and may require careful planning. Further, proper estate planning has several benefits, including protecting your heirs, preventing fights amongst your relatives and loved ones, and lowering tax bills.
Protecting Your Heirs
No matter how large or small your estate is, it’s crucial to review your goals and prepare accordingly. Without an estate plan, the courts will determine how to divide your estate, which can get messy, be more costly, and take years to resolve.
Preventing Fighting Among Relatives
After you are gone, fighting is the last thing you or anyone wants to have happen. Death is a time to mourn, reflect on happy memories, and be with loved ones. If you pass without an estate plan, the opportunity for arguments often arises. Children may fight over who gets the car or the timeshare. A surviving spouse may feel he or she deserves more of the business or a life insurance policy. Some relatives may feel they deserve more than others because they provided care or have more financial issues. This could lead to a mess, culminating in lengthy and expensive court proceedings.
Lowering Taxes
Estate planning can also help you and your loved ones save money. Contacting an estate planning advisor can help lower your federal estate taxes to help ensure more of your estate goes to your family and chosen beneficiaries.
Why Should You Include a Charity in Your Estate Plan?
You may already contribute to your community in a variety of ways, including giving money to your preferred charity or community group. You can continue to do this even beyond your lifetime. Continuing this legacy has financial benefits as well as maintaining your ongoing contribution. Some may choose to wait to make significant contributions through their estate plan, to organizations that provide:
- Healthcare, including research and support for specific diseases and conditions;
- Education, including literacy and early education support;
- Religious organizations;
- Humanitarian efforts;
- Animal welfare; and
- Environmental conservation.
Through charitable giving, a portion of your estate is left to carry on the good deeds you started during your lifetime or wish to make an impact on after your death.
Limit Taxes on Your Estate
Florida does not have an estate or inheritance tax, so no tax is due on your estate to the Florida government. However, estates over a certain amount are subject to federal estate tax.
By leaving part of your estate to a charity, you can help minimize your tax liability. Donations to charities are exempt from estate taxes.
How to Leave Your Money to Charity
Talk with a trusted planning attorney. They can describe the different options you have available and which one is the best option for you, including leaving a bequest in your will or creating a trust.
Charitable Bequests in Your Will
In your last will and testament you can designate how you want your estate divided and conveyed after your death. This simple act can give you peace of mind, knowing that your loved ones will be provided for after you are gone. In your will, you can also designate part of your estate to charities and organizations that are important to you. The process is the same as designating part of your estate to go to your children, spouse, or siblings. Ways to include a charity in your will include the following:
- Leaving a portion of your estate to a charity;
- Leaving your entire estate to a charity; or
- Leaving your estate to a charity only if your chosen beneficiaries have passed away before you.
The most important thing about wills is to ensure the documents meet the statutory requirements. Otherwise, the will is not valid. An estate planning attorney can help you draft your will correctly to ensure its validity.
Set Up a Charitable Remainder Trust
A charitable remainder trust is irrevocable. It cannot be changed once it is made. To set up a charitable remainder trust, you donate cash, assets, or property to a trust. The trust pays income annually to you or a beneficiary. These annual payments continue for a specified time period, usually for your life. After your death, the remainder of the trust is donated to selected charities.
Set Up a Charitable Lead Trust
A charitable lead trust provides income to the charity you designate. This income distribution is for a set term, and after that, the remaining assets of the trust are distributed to your designated beneficiary, such as family members or friends.
Contact Beller Law, P.L., Today to Create Your Estate Plan
Estate planning is essential to help protect your estate and legacy. The goal is to minimize your estate’s tax burden and ensure more of the generational wealth goes to your heirs. At Beller Law, P.L.,, we understand that everyone has a unique situation. Attorney Rebeccah Beller has over 25 years of experience, and she works to ensure every client has a plan tailored to their circumstances. Let us help you continue your legacy. Contact the office of Beller Law, P.L., now for more information.