Providing for loved ones is always at the front of a client’s mind when we discuss their Will. One thing I always suggest is to also think about an organization or agency that you support as an option. If your estate can accommodate such a gift, it is one that creates a legacy that you and your family can be proud of.
There are a number of ways to go about creating this legacy. You can provide a charitable or non-profit organization a one-time specific amount gift that can be used however the organization chooses. For example, there may be a group you have volunteered with that you know could use funds for a number of different purposes. This scenario will allow the group to use the funds as they deem necessary and when they are in need.
However, some prefer to create an one-time cash gift for an organization dedicated for a specific purpose. For example, you have left a $5,000 gift to a non-profit you interned with to be used for their outreach program. A pit-fall that can arise in that scenario is that the organization does not require the funds for that purpose when you pass away. This could require the organization to wait to until they require the funds for that dedicated purpose, depending upon how your Will is worded.
Another option is to create an endowment fund or trust that the organization can use towards a general purpose, such as a scholarship. This will allow your gift to continue on beyond your passing. Depending on the amount you intend to gift to an organization, this may be the more appropriate option.
At Paul & Company, we like to practise what we preach. Partner, Lorianna Bennett, has been recognized by TRU for her charitable giving, read more here. Contact our office to see how we can help in your estate planning.