Building a charitable legacy can’t be done perfectly in just one day. Understanding the full influence that your giving will have requires insight and thorough estate planning. Florida laws are friendly to those building their estates in an effort to positively impact society.
The first step in planning future charity is to start with naming your beneficiaries. Beneficiaries are people or entities that you consent to receive your assets. Even if you’re alive, assets can be automatically bequeathed to a charity when you wish. The only way to have your charities listed as beneficiaries is to name them when you update your estate plan.
Rollovers for charities
The estate planning process accounts for your retirement and the money you set aside for this period. For retirement accounts like IRAs, you can designate a specific date in which funds get sent to a charity. Any funds transferred to a charity are tax free and will even reduce your taxable status.
The revocable trust
Trusts are coordinated agreements that are financial in nature. A trustee, being an account manager, oversees the trust. The assets of the trust go to a beneficiary, which can be a charity you choose. Transferring assets from a trust to a charity ensures that the assets aren’t taxed.
Wills can state your wishes for specific assets to go to a charity. Within a hearing, a judge identifies the charities you bequeath assets to. Your will is then examined for specific or general orders. These orders are given to the charity in regard to how they must use your money.
Estate planning in Florida
It’s possible to create a legacy behind your charity. You need good planning to understand what your impact will result in.