If you plan to leave a portion of your estate to charity upon your passing, you need to understand the complexity and consequences. This may seem like a simple and kind-hearted thing to do. But if you do not make careful plans in advance, the estate could be taxed and distributed in ways you never intended. This overview of charitable giving in Rhode Island highlights some of the issues you need to be aware of.
Forms of Charitable Giving
If your goal is to share some of the prosperity you have built over the course of your life with a charitable organization you feel strongly about; you have several options. These are the various ways you could dedicate all or part of your estate to charitable giving:
- Giving securities and stocks
- Leaving a bequest in your will
- Dedicating your life insurance policy
- Through a retirement plan
- With a charitable remainder trust
- With charitable gift annuities
Each one of these forms of charitable giving is worth your consideration, but each also has distinct advantages and disadvantages. The best way to carry through with your wishes is to work with an experienced estate planning attorney with experience in charitable giving.
Issues with Charitable Giving
The process of giving assets from an estate to a charitable organization can be more complicated and perilous than people expect. Without making plans and provisions in advance, it is possible for assets to be heavily taxed before a small fraction of the original sum is passed on to a charity. Charitable giving can be a lot slower than many people would like, forcing assets to go through a lot of bureaucracy and scrutiny before being donated. Finally, there is the possibility that a gift could be unexpectedly seized or redirected, thereby canceling out the charitable giving entirely.
If leaving a portion of your estate to a charity is important to you, do not leave things up to chance or uncertainty. Work with the Law Office of Jay Bianco, and take advantage of all the experience and resources we have to provide. Call 401-206-0098 at your convenience.