Yes, you absolutely can name multiple charities as remainder beneficiaries in your estate plan, a strategy that allows you to support various causes you care about while retaining control of your assets during your lifetime.
What are the tax benefits of charitable giving through my estate?
Naming charities as beneficiaries offers significant estate tax benefits. Assets passing directly to a qualified 501(c)(3) charity are generally removed from your taxable estate, potentially reducing estate taxes. As of 2023, the federal estate tax exemption is $12.92 million per individual, but this number is subject to change. However, even estates below that threshold can benefit from charitable deductions. According to the National Philanthropic Trust, charitable bequests account for approximately 9% of all charitable giving in the United States, totaling billions of dollars annually. You can specify percentage splits – for example, 50% to the American Red Cross, 30% to a local animal shelter, and 20% to a historical preservation society.
How does a charitable remainder trust work, and is it right for me?
A Charitable Remainder Trust (CRT) is a more complex but potentially advantageous tool. With a CRT, you transfer assets into the trust, receive income from those assets for a set period or your lifetime, and then the remaining assets go to the designated charities. CRTs can provide current income tax deductions for the present value of the remainder interest. Interestingly, around 15% of all charitable bequests are made through CRTs, demonstrating their popularity among high-net-worth individuals. For example, consider a client, Mrs. Eleanor Vance, a retired teacher with a portfolio of stock investments. She wanted to support both her local library and a national environmental organization, but also wanted a stream of income during retirement. We set up a CRT, allowing her to receive income while ensuring her chosen charities receive the remaining assets after her lifetime.
What happens if I change my mind about my charitable beneficiaries?
Flexibility is key, and your estate plan shouldn’t be set in stone. Most trusts and wills allow for amendments, so you can change your charitable beneficiaries as your priorities evolve. However, it’s crucial to formally document any changes with the assistance of an estate planning attorney, like myself, Steve Bliss, here in Wildomar. I once had a client, Mr. Abernathy, who initially named a specific cancer research foundation in his will. Years later, a close friend was diagnosed with a different disease, and he wanted to shift his support. Because his will didn’t allow for changes, a costly legal battle ensued, causing undue stress for his family.
What mistakes should I avoid when naming charities in my estate plan?
Several potential pitfalls can derail your charitable giving goals. One common mistake is failing to verify the charity’s tax-exempt status with the IRS. You also need to be incredibly precise with the charity’s legal name and EIN (Employer Identification Number) to avoid delays or errors in distribution. I recall another client, Ms. Peterson, who simply wrote “The Children’s Hospital” in her will. There were three hospitals with similar names in the region, creating confusion and legal hurdles for her executor. Ultimately, we located the correct organization, but it required significant time and expense. Fortunately, we were able to resolve the issue before it became a bigger problem, proving that careful planning and detailed documentation are vital for successful charitable giving. By partnering with an experienced estate planning attorney, you can ensure your charitable wishes are clearly expressed, legally sound, and effectively carried out, bringing peace of mind to both you and the organizations you support.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- living trust
- revocable living trust
- estate planning attorney near me
- family trust
- wills and trusts
- wills
- estate planning
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “What professionals should be part of my estate planning team?” Or “Can probate be avoided with a trust?” or “What role does a financial advisor play in managing a living trust? and even: “What is reaffirmation in bankruptcy and should I do it?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.