Many people struggle with how much money they should leave to their children in their estate plans and how much they should leave to charities. A charitable inheritance can be a middle ground that also helps passing on philanthropic ideals to future generations.
As wealthy families begin hoping and planning for the repeal of the estate tax, they have begun to cautiously turn their estate planning goals away from minimizing the estate tax burdens on their estates. Instead, they are turning toward how they should divide their estates between their children and charitable institutions.
Parents want to leave their children enough assets to support their needs without giving so much that bad habits could form. Many people would also like to continue the charitable giving they have undertaken during their lifetimes. Finding an appropriate balance between these goals can be difficult.
There is, however, a way to do both as Financial Advisor explains in "Charitable Inheritance Dilemmas."
The idea is relatively simple and something many families already do. Money can be left to children. The gift of giving to charity can also be left to them.
Money can be set aside and a donor advised fund created for each child to maintain. The children can then decide which charities should receive the funds. This is called a “charitable inheritance” and it is a good way to teach future generations about the importance of philanthropy.
If you are interested in charitable inheritances or other ways you can meet all of your estate planning goals, contact a Cincinnati estate planning attorney.
Remember: “An ounce of prevention is worth a pound of cure.” When making your estate plans or when probating an estate or administering a trust, do not go it alone. Be sure to engage a Cincinnati estate planning attorney.
For more information about estate planning, probate or trust administration in Cincinnati (and throughout the rest of Southwest Ohio) and to review free resources regarding estate planning, probate or trust administration, visit my website. If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526).
Reference: Financial Advisor (Feb. 1, 2017) "Charitable Inheritance Dilemmas."