- #1
Loren Booda
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Which would best benefit a charity - an immediate gift, a gift bestowed over a lifetime, or a gift willed upon death?
What do you want to achieve? If a charity is facing a one-time expense and you can make a timely donation, go for it. One of my favorite charities is Maine's Home for Little Wanderers - shelter for very young children. They have on-going expenses, and they might best be served by a nice endowment that can provide a steady source of income (can't touch the principal) year after year to provide food and clothing. The same for an animal shelter. You can never predict who is going to get control of a charity's funds, so the best bet for long-term giving (before or after death) is to set up a protected fund that will generate some income in perpetuity - that way, an unethical manager can't abscond with the principal and enrich himself/herself. Universities have staff and procedures in place to prevent this kind of crap, but often the neediest and most effective non-profits do not.Loren Booda said:Which would best benefit a charity - an immediate gift, a gift bestowed over a lifetime, or a gift willed upon death?
Bequests are gifts of personal property or money that are left to another person or organization after the donor's death. These bequests can benefit others by providing financial support, preserving the donor's legacy, and helping to fund charitable causes or organizations.
A bequest is a gift made through a will or trust, while a beneficiary designation is a gift made through a retirement account, life insurance policy, or other financial account. Both can be used to leave assets to others, but a bequest is typically made after death while a beneficiary designation can be made during the donor's lifetime.
To ensure your bequests are used wisely and in accordance with your wishes, it is important to clearly outline your intentions in your will or trust. You can also work with a lawyer or financial advisor to create a charitable giving plan and choose reputable organizations or individuals to receive your bequests.
Yes, there can be tax benefits to making bequests. In many countries, bequests to qualified charitable organizations can be deducted from the donor's estate taxes. Be sure to consult with a tax professional to fully understand the potential tax benefits of making bequests.
Yes, you can change your bequests after they have been made. If you need to make changes to your will or trust, you can work with a lawyer to update your documents. Additionally, if you have made a beneficiary designation, you can typically change or update it at any time by contacting the financial institution or organization holding the account.