Leaving a gift to charity in your estate plan is an effective way to support causes you care about. In Oregon, you have several options for including charitable giving in your plan.
If you want to make charitable giving a part of your legacy, here are some important points to consider.
Choosing how to give
You can give to charity in your estate plan through your will or trusts. One common method is to leave a specific sum of money or a percentage of your estate to a nonprofit organization. You also have the option to name a charity as a beneficiary of a life insurance policy, retirement account or investment account.
Another option is to create a charitable trust. A charitable remainder trust, for example, allows you to provide income to a person during their lifetime, with the remainder going to a charity after they pass away.
It is important to be clear
Your gift should be clearly described in your estate plan to avoid confusion. Include the legal name of the charity and, if possible, its federal tax ID number. This helps ensure the gift goes to the correct organization.
There can be tax benefits
Charitable gifts in your estate plan may reduce the taxable value of your estate. While Oregon has a state estate tax, not all estates are large enough to owe it.
Giving to charity through your estate plan is a personal decision. It can create a lasting legacy while offering tax advantages. To find out more about your legal options, it may help to seek some further guidance.