We all know the old saying “You can’t take it with you when you’re gone.” This is usually meant to imply that we need to spend our money while living, but there is a more financially responsible way to interpret this quote. Since we know that we can’t take our money and belongings with us when we pass, why not donate them to those who need it the most?
While estate giving is not the most enjoyable conversation, it is something we should all consider. It is also something many of us may not know about, or don’t fully understand, so we wanted to share the basics of estate giving for our readers.
What Is Estate Giving?
Donating to charity has multiple benefits for both parties. The donor gets to help those in need while receiving tax benefits and financial motivation, and the charity gets donations that allow them to continue helping those who need it.
Estate giving is one of the most beneficial ways of giving for both the donor and the charity. This happens when someone gives a large portion of income, or a material possession, to a nonprofit after they have passed. The tax breaks and other financial motivations for the donor are much more than normal giving. At the same time, the large amount of support from an estate gift provides the nonprofit with much needed improvements that would have taken years to accomplish.
For example, at the Alabama Free Will Baptist Children’s Home, one estate gift could equal a car, repairs to the home, better appliances, and contributions to our budget. One kind act just replaced hundreds of similar kind acts that can now go towards other great causes!
How to Give
The first step to planning an estate gift, along with any other financial matter, would be meeting with a financial planner to discuss the best way to help both yourself and the charity. The better you plan, the more both parties will make!
One of the most crucial parts of estate giving is having a will. This solidifies your intentions and erases any doubts of where the money should go. There are many different options for this type of giving, including charitable remainder trusts and charitable lead trusts. Ask your financial planner about the best option, and fully consider the different outcomes, before making such a large contribution.
Ask Us About Estate Giving
Alabama Free Will Baptist Children’s Home has received multiple estate gifts from charitable hearts who decided to bless others after they passed. We are familiar with the process, and we would be happy to answer any questions you may have about the steps that need to be taken. We have helped care for over 1,000 children since 1947, but we are burdened with limited resources and aging buildings, and estate gifts go an incredible distance in alleviating these growing pains. Learn more about our ministry, and contact us today for more information!