Bequeathing Non-Cash Assets to a Charity in Your Estate Plan

Many people choose to leave money to charities in their estate plan as a way to support their favorite organizations or causes. Doing so also can decrease their potential estate tax liability.

However, making gifts to charities under your estate plan does not have to mean giving them cash. There are other types of assets you can leave behind to your organization of choice.

Here are a few examples:

• Investments: You can donate stocks, bonds and mutual funds directly to charities upon your death in most cases. This actually is a better option in some circumstances than selling the investment and donating the cash proceeds because donating the investment directly can help the charitable organization avoid capital gains taxes. This means the charity will get more money than had you cashed out and donated the money you had remaining after taxes. Typically this is a better option for larger charitable organizations that already have brokerage relationships.
• Life insurance: You can designate a charitable organization as your life insurance policy beneficiary. Either dedicate the entire policy to an organization, or note a specific percentage of the policy proceeds that you wish to go to the charity.
• Tangible property: You can bequeath specific pieces of tangible personal property to charitable organizations if you wish. Perhaps there is a museum that could use a historically significant piece of artwork you own. Maybe you have collectibles or other valuables that would make sense for a specific charity.

For more information about how to leave non-cash assets to a charity in your estate plan, contact an experienced Tampa lawyer at BaumannKangas Estate Law.