What are the Steps to Setting up a Charitable Gift Annuity?

Planning your legacy takes forethought.

You want to leave a lasting legacy.

A great way to do this is through charitable giving.

According to a recent Hawaiian Business article, titled “5 Steps to a Lasting Legacy,” one such estate planning tool is a charitable gift annuity.

You may recall that I addressed charitable gift annuities yesterday as one of the many options for charitable giving.

Today we are going to get down in the weeds a wee bit more on this particular option.

So, how do you set one up?

Select an organization.

How would you like to make a difference?

Is there a particular organization you have supported in the past?

Has any charity shaped the course of your life or someone close to you?

Do you have an charity in mind?

Great!

We can move on to the next steps.

Learn about the charities guidelines.

Some charities have rules regarding charitable giving.

How so?

Some may require you to be at least a certain age or contribute a minimum dollar amount.

Certain charities may not accept all payment methods.

Know what your charity requires.

Seek professional help.

Work with an experienced estate planning attorney to see if a charitable gift annuity aligns with your goals.

Let us assume a charitable gift annuity is a good option for you.

What next?

Create a mutually beneficial agreement.

When you create your contract, be sure you customize it to your goals.

What are some things to consider?

You should outline what would happen with the remaining balance at the death of the annuitant(s).

You will probably want to consider whether this amount will go to a specific purpose defined by you or whether the charity has authority when applying the funds.

Once the annuity has been created and defined, you can relax.

You have left a legacy while receiving a charitable tax deduction and a fixed annual payment.

If this is a method you want to consider, contact an experienced estate planning attorney today.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Hawaiian Business (June 2047) “5 Steps to a Lasting Legacy”