Charitable giving is an act of giving voluntarily to support a cause or an organization you care about. However, there’s more to giving to charity than writing a check. If you’re planning to give a large donation, especially through real estate, you need to have a plan in place. At this time, you need to hire a real estate planning lawyer to guide you through the challenges of charitable giving. Continue reading to learn more:

Benefits of estate planning attorney in charitable giving 

• Creating a charitable trust

An estate planning attorney can assist with charitable giving by establishing a charitable trust. A charitable trust allows you to set aside assets for charitable organizations you feel connected to. An estate planning attorney can help you determine which type of charitable trust aligns with your financial goals, tax needs and wishes.

• Maximizing Tax Benefits

Tax incentives contribute to charitable giving and an estate planning attorney helps in maximising those benefits. Tax deduction is offered for charitable donations in some states and this can help reduce your taxable income. Charitable gifts can also reduce estate taxes if done through proper estate planning. An estate planning attorney can assist in creating a structure for your charitable donations so that they can qualify for the highest possible tax deductions. 

• Designating Charitable Bequests in Your Will

One way to leave a charitable legacy is by designating a charitable bequest in your will. A charitable bequest allows you to donate a part of your estate to a non-profit after your death. This could be in the form of a specific amount of money, a percentage of your estate or assets. An estate planning attorney will help you draft a will that includes charitable bequests so that your intentions are made as clear as possible. 

• Setting Up a Donor-Advised Fund

A donor-advised fund (DAF) may be the best option if you want more flexibility in your charitable giving. A DAF allows you to make charitable contributions, receive an immediate tax deduction and then recommend grants from the fund over time. An estate planning attorney can help you set up a donor-advised fund and integrate it into your overall estate plan. This way, your charitable gestures live on for years after your death.

• Avoiding Legal Pitfalls

Estate planning for charitable giving involves navigating a range of legal regulations, from tax laws to specific rules governing charitable donations. An experienced estate planning attorney ensures that all aspects of your charitable giving are legally compliant. They help you avoid potential legal pitfalls that could invalidate your donations or reduce the intended benefit to the charity.

Conclusion

Charitable giving is one way to leave a lasting impression on the causes or organizations that matter to you. Having an estate plan, created professionally by an estate planning attorney can help you bring your wishes to fruition. They also ensure your plans are fulfilled most effectively, complying with all legal requirements.