Including Charity as a Child in Your Will

Estate planning is important regardless of whether you believe that you have a little or a lot. Many donors mistakenly assume that a small estate can yield little in terms of charitable gifts, especially if there are children to consider.

However, that is not necessarily true.

For Example:

Let’s assume you have 3 children and an after-tax estate value of $500,000 (this is easily attained if you own a home).

You might think to distribute that between your three children:

  • They would each receive $167,000.

legacy giving without charity

However, if you add a fourth “child” into the mix (charity), your estate would then be divided among four beneficiaries:

  • They would each receive $125,000.

Then each of your children can also share in the tax credit that results from the donation receipt of this gift, giving each of them an additional $21,000 afterwards.

legacy giving with charity

  • Each child would each receive $146,000
  • Charity would receive $125,000

Giving to charity through your estate can allow you to leave a lasting legacy, while still ensuring those who survive you are taken care of.  Call one of our partners at ADVISORS with Purpose (1-866-336-3315) to discuss the best way to deal with all aspects of your estate – this service is complimentary, confidential, and completely independent of Help Lesotho.