Securing Your Legacy for Future Generations through Estate Planning 

Estate planning allows individuals to manage and preserve their assets during their lifetime and after their passing. It offers peace of mind, knowing that your legacy is safeguarded for your loved ones and the causes close to your heart. Whether you’re aiming to support family, friends, or charitable organizations, estate planning ensures your wishes are fulfilled. This guide explores key aspects of estate planning and highlights the various ways you can give to the people and causes that matter most to you. 

Estate planning goes beyond drafting a will. It is a comprehensive strategy that can minimize tax liabilities, avoid probate, and ensure your assets are distributed as you desire. Many people choose to incorporate charitable giving into their estate plan to leave a lasting impact on organizations and causes they care about, like Camp Ondessonk. This type of giving can take many forms, each with its unique benefits, both for you and the organization. 

Here are some of the most common methods of giving as part of estate planning: 

Bequests – A bequest is the simplest form of charitable giving in estate planning. It involves leaving a specific amount of money, property, or a percentage of your estate to a nonprofit organization through your will or trust. This can be an effective way to support a charity like Camp Ondessonk, for example, or another organization that has had a significant impact on your life. Two key benefits to this type of gift are their flexibility and ability to be changed or revoked at any time during your lifetime, and that they can reduce the size of your taxable estate, which can lower estate taxes for your heirs. 

Charitable Remainder Trusts (CRTs) – A CRT allows you to receive income from your assets for a set period, after which the remainder is donated to a charity. It is a popular option for individuals who want to maintain income during their lifetime but also want to support a cause in the future. In addition to receiving income during your lifetime, you can benefit from an immediate tax deduction for the charitable portion of the gift when a CRT is established. 

Charitable Lead Trusts (CLTs) – In a CLT, the charity receives income for a set period, after which the remaining assets go to your heirs. This is the reverse of a charitable remainder trust and is an excellent option for those who want to make an immediate impact on a charity while still preserving assets for their heirs. Additionally, a CLT may reduce or eliminate gift or estate taxes on the assets passed to your heirs. 

Gifts of Life Insurance – Donating a life insurance policy can be an effective way to make a significant impact with relatively low cost. By designating Camp Ondessonk or another charity as a beneficiary, or transfer ownership of the policy to the charity, the benefit will go directly to the charity, bypassing probate. 

Retirement Plan Assets – Tax-deferred retirement accounts, such as IRAs or 401(k)s, can be heavily taxed when left to families. However, leaving them to a charitable organization allows the charity to receive the full value of the gift, as they are tax-exempt. Like with gifts of life insurance, giving your retirement plan assets is as easy as naming a charity as the beneficiary. 

Estate planning doesn’t have to be daunting. Start by identifying your goals, both for your family and for the charities you’d like to support. Work with a qualified estate planner or financial advisor to craft a plan that meets your needs and maximizes the benefits for your loved ones and the organizations you value. 

Whether you’re supporting a family member, your local community, or a cherished institution like Camp Ondessonk, estate planning is a powerful way to ensure your legacy endures. Through thoughtful planning and charitable giving, you can make a lasting difference for future generations. 

Click here to learn more about Ways to Give.