How to include a charity in your will

Many individuals support causes that are important to them by giving of their time, energy and resources during their lifetime. It’s possible to continue having an impact after your death with a charitable bequest to the charity or charities of your choice. By leaving money to a charity in your last will and testament, you can continue to make a difference for important causes after your death. It may also result in some tax advantages, such as reducing taxes on your estate.

3 ways to give to charity in your will

If your wishes are to leave a legacy (a gift in a will) to a specific organization, there are typically three types: fixed sum, specific and residuary. An estate planning attorney can help ensure your charitable donation instructions are legally upheld and may be able to help you assess which type best meets your particular goals and needs.

Fixed sum gift

A fixed sum gift, also called a pecuniary gift, specifies a specific amount of money to be given to a charity. An estate planning attorney can help you draft your will to ensure that your cash gift is left to the charity of your choice. A fixed sum gift is a very straightforward way to ensure your favorite charitable cause is supported upon your death. It also makes budgeting easy and enables you to calculate the potential tax benefits in advance of your death.

Specific legacy

A specific legacy is the gift of a named item in your will that will be given to the charity of your choice. Typically, it's an item of value such as property, jewelry, a life insurance policy, collections or shares of stock. Leaving a specific legacy can be as simple as the inclusion of a sentence that states the gift and identifies the receiving organization. Keep in mind that the item you are gifting must be in your possession at the time of your death. Lastly, it's important to clearly define your gift. Be specific when writing your will about which item/s are to be given to charity. For example, if you have more than one coin collection or if you have multiple properties and fail to specify which is to be donated, disputes could arise or your gift may not be allocated according to your wishes. A qualified estate planning attorney can help ensure the correct details are included in your will.

Residuary legacy

A residuary legacy is leaving all, or a percentage of the remainder of your estate to a charity once all other gifts to your beneficiaries (such as family and friends), outstanding taxes, debts, and other commitments have been taken into account and distributed. Basically, it means that you can leave a set proportion of your estate to charity after other beneficiaries have been taken care of.

How to update your will to include a charity

If you have already written a will but now want to leave a legacy to a charity, you can make an addition or changes without having to rewrite your current will. This addition is called a codicil, and an estate planning attorney could advise you on how to add this to your existing will. In most cases, it is advisable to seek the assistance of a professional estate planning attorney when making any changes to your last will and testament. First of all, you’ll want to ensure the codicil complies with state laws to ensure validity upon your death. A qualified estate planning attorney can help you ensure a codicil is properly written in a way that avoids ambiguity. Secondly, in the case of a complex estate or will, a qualified professional can also help you determine if a codicil is the best way to add your charitable bequests or if you need to modify your will in its entirety to ensure proper execution and avoid disputes.

If you want to continue your legacy of supporting meaningful causes, a charitable bequest may be a way to allow you to support your favorite cause, even after you’re gone. To learn more about how to write a will or name beneficiaries, visit the Protective Learning Center.

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