CHARITABLE GIVING MADE EASY
Financial and estate planners often aggressively present prospective donors with sophisticated gifting strategies. In many cases, the techniques are unnecessarily complex. The experts seem to miss the point that the easiest and most economical methods are the most appropriate for most people that want to give to a favored non-profit organization.
When contemplating gifts, most prospective donors think first of putting a paragraph in their will. While this is a good method, there are other less expensive and simpler methods that should be considered first.
Adding the name of your favorite charity on the beneficiary form of your insurance policy or IRA can easily accomplish a charitable gift. So can using your bank’s payable on death account form. These techniques can be used without the need to involve a lawyer or other paid advisor. With this technique, a prospective giver can retain the asset and continue to receive the income. The funds in the account continue to be available throughout the life of the donor. If a donor changes his mind, a different charity could be substituted. Any beneficiary change can be made by the donor himself without involving paid advisors.
Using beneficiary designations keeps the assets to be gifted out of the probate system. A gift made through a will requires the help of a lawyer and the probate court to complete the gift. A gift that is made by using the beneficiary form goes directly to the charity, without lawyers’ fees or the delay that often results with a will.
Simple and straightforward gifting methods can be superior to complex gifting methods. Using beneficiary forms for insurance, IRAs and bank accounts is an effective way to make outright gifts to your favorite charity.
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