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.
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.
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.
- 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.