What’s a great way to show someone you love them? It might not sound like the most romantic or heartwarming topic, but the answer is estate planning! It’s a way to truly express charitable giving.
Unfortunately, the current tax code makes it harder for individuals to receive a tax benefit from charitable donations. But fortunately, there are some ways to overcome that obstacle. This will allow you to support your favorite causes during your lifetime and ensure a lasting impact through your estate plan.
They are called donor advised funds and community foundations. I’ll also talk to you about how you can plan using donor advised funds or community foundations. These are the tools to consider for leaving a legacy of love and impact.
Let’s start by exploring what donor advised funds and community foundations are —and how they can play a crucial role in your estate planning journey.
Donor Advised Funds: A Helping Hand for Your Charitable Dreams
Donor advised funds (DAFs) are like magic pots of gold. They allow you to make a difference in the world while also gaining some financial benefits. Think of it as a charitable savings account – you contribute money, get a tax deduction, and then decide over time where and when to distribute those funds to support the causes you care about.
Here’s the beauty of it: when you contribute to a donor advised fund, you’ll receive an immediate tax deduction. This occurs even if the money doesn’t go to the actual charities right away. This flexibility is especially beneficial when you’re planning your estate and want to make sure your favorite causes continue to thrive.
Imagine you’ve been involved in a local animal shelter, and it’s a cause close to your heart. You can help the shelter by creating a special fund for donations. This way, you’ll get tax benefits now, and your family can keep supporting the shelter even after you’re not here anymore. It’s like leaving behind a legacy of compassion and care for the furry friends you love.
Community Foundations: The Pillars of Local Giving
Now, let’s talk about community foundations – the superheroes of local philanthropy. These organizations are like community piggy banks. They collect donations from generous individuals and businesses and distribute those funds to support local initiatives, charities, and projects.
Community foundations play a vital role in creating a strong, vibrant community. They address local needs and foster positive change.
Partner your donor advised fund with a community foundation and you’re not just giving to a cause. You’re investing in the well-being of your own community. This ensures that your charitable contributions have a meaningful impact right where you live.
Picture this: you’ve always admired the community park where families gather, children play, and friends come together. By channeling your charitable giving through a community foundation, you can contribute to the upkeep and improvement of this park.
In this way, you’re not only leaving a financial gift. You’re nurturing the very environment that brought joy to countless families over the years!
Nurturing Your Legacy: Naming the Foundation in Your Estate Plan
Now you understand the power of donor advised funds and the importance of community foundations. The next step in your estate planning journey is to make sure your legacy continues to thrive.
Naming the foundation is like putting a stamp on your commitment to making a lasting impact. It ensures that your family, friends, and the community are aware of your wishes and can carry on your philanthropic efforts. This step is about more than just leaving money behind; it’s about leaving a legacy of love, compassion, and positive change.
You’re not just passing on financial resources; you’re passing on values, principles, and a commitment to making the world a better place. It’s a way of saying, “This is what mattered to me, and I hope it matters to you too.”
A Legacy of Love and Impact
When combined with love and a vision for the future, estate planning becomes a tool for creating a lasting impact. It goes beyond simply managing assets; it’s about fostering a legacy that embodies love and philanthropy.
Combining donor-advised funds and a community foundation in your estate plan goes beyond managing financial resources. It involves sowing the seeds for a legacy of care.
Imagine your estate plan as a roadmap for positive change. By linking your donor advised fund to a community foundation, you create a blueprint for your loved ones to follow. It’s not merely about passing on wealth; it’s about passing on values, principles, and a commitment to making a difference.
Your estate plan will become a beacon that guides your family and community toward continued support for the causes you hold dear.
It’s a way of expressing the significance that a cause holds for you. So, consider the causes that touch your heart, envision the impact you want to leave, and let your estate plan be a legacy built on love and philanthropy. This way, you transform the world of estate planning into a realm of meaningful connections and lasting contributions.
Think about the smiles on children’s faces at the community park. The wagging tails at the local animal shelter and the countless lives touched by your support. That’s the true essence of estate planning – it’s not just about money; it’s about love, compassion, and leaving the world a little better than you found it.
Pause for a moment to think about the things you care about. Let your estate plan show your love and support for the community and causes that mean a lot to you. After all, estate planning is love.
How Can Schroeder Larsen Law Help You?
I’m all about estate planning done with love and with a vision for the future. When you include both donor-advised funds and a community foundation in your estate plan, you’re not just passing on money. You’re passing on a promise to make a positive impact. Your estate plan can be a guiding beacon for your family and community. Get in touch with Kirsten today at Schroeder Larsen Law today to inquire about your state planning needs – love in action.
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