If you are like many successful Vietnamese residents in California, you want to give back to your community through charitable organizations. Doing so has multiple benefits, as you support an organization that means something to you while also getting income tax benefits. Yet, you may wonder if you can continue this legacy after you die. The good news is you can with the proper preparation.
Planned giving is a thoughtful process
When you start preparing your estate plan, you may not immediately think about leaving money or assets for your favorite charities after your death. However, as your fortune grows, you may realize that you have the means to do so. Yet at the same time, you will still want to leave sufficient assets to your heirs. By thoughtfully considering your options, you can do both.
Most people in the United States hold their wealth in non-cash assets such as real estate, retirement accounts, life insurance and privately held stock. You can leave such assets to a charity, but the first step is understanding all your options. You can leave assets to charities via a bequest in your will, setting up a charitable trust, listing a charity as a beneficiary on specific accounts or creating a charitable annuity. Once you have decided what is possible, you can select the exact form.
There are tax benefits
Every family and estate has unique circumstances, so all considerations for planned giving will be different. In addition to determining how much you may want to leave to one or more charities, you will also want to consider tax benefits while you are still alive and estate tax benefits for your heirs. Working with a financial professional can help you determine the best route to maximize benefits.
Financial professionals can also advise you on the best estate instruments for creating planned giving, as the language surrounding some of these documents can be challenging to understand. Keep in mind that you don’t have to give money but can donate real estate or another form of wealth to your chosen charity.