A Gift in Your Will or Living Trust
With a gift in your will or living trust, you can make a powerful future gift that costs you nothing today.
You may find that making a gift in your will or living trust is an easy way to meet your charitable goals—perhaps even allowing you to make a more substantial gift than would otherwise be possible. Consider the following:
- It is simple to add a charitable gift to a new or existing will or living trust.
- There is no immediate out-of-pocket cost—you retain full use of your assets during life, so the gift does not impact your current lifestyle.
- This is a comfortable gift because you can change it at any point during your life.
- You can make an unrestricted gift or specify how you want your gift to be used.
You also have flexibility in how you designate your gift. You can choose to give:
- A specific asset or amount
- A percentage of your estate or trust assets
- What remains of your estate or trust after all other gifts, taxes, and fees have been paid
California probate—a reason to consider a living trust
If you live in California, you may already know that the probate process is more challenging than in many other states. Placing your assets in a living trust is one way to bypass probate—assets are transferred directly to your beneficiaries according to the trust terms.
Another way to bypass probate is to name beneficiaries for all nonprobate assets (for example, a life insurance policy, IRA, or other retirement or financial account). Read about how to donate those assets using a simple beneficiary designation.
Evaluate the fit.
A gift in your will or living trust may be a particularly good option to consider if you:
- Are interested in a simple, powerful gift that costs you nothing today
- Want the flexibility of a gift you can change in the future if your situation or goals change
- Are seeking ways to reduce any potential estate tax (a gift in your will or living trust qualifies for an estate tax charitable deduction)
- Are looking at options to fund an endowment gift, a testamentary charitable remainder trust, or a testamentary charitable lead trust
Don’t have an estate plan? Consider the consequences.
Whatever your age or the value of your assets, if you die without a valid will or living trust to specify the distribution of your property, state law takes over without any consideration for your unique personal situation and wishes.
Learn more about the downsides of not planning
- Your spouse may not get as much as you expect (under the laws of many states, the spouse and children will each take equal shares of the estate).
- A child or other relative with special needs will not be given any special financial consideration.
- Meaningful heirlooms or other belongings will not automatically go to their intended recipients.
- The court-appointed guardian for any minor children and/or children with special needs may not be the person you would have chosen.
- The court-appointed estate administrator will likely not be the person you would have chosen.
- Estate administration becomes more difficult without clear direction, allowing fees to accumulate and shrink the total estate.
- If you have no heirs and no will or living trust, the state can end up with your entire estate.
- For larger estates, you forgo the chance to implement measures to reduce any potential estate tax.
- You will lose the opportunity to direct assets to those charitable organizations you would like to acknowledge and support as part of your legacy.
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See how it works.
Grace wants to include a charitable gift to us in her living trust. She considers making a specific donation of 100 shares of stock but realizes this gift will surely change in value over time—perhaps significantly. Instead, she decides to leave a percentage gift—40% of the trust assets to each of her two children and 20% to CSUB. When Grace dies, her trustee will carry out her wishes by distributing her assets according to the terms of the trust.
Consider your timing.
It’s never too early to create or update your will or living trust! And since this type of legacy gift does not qualify for an income tax charitable deduction, you can plan this gift at any time that is convenient for you.
We can help.
Let us provide you with more information, along with specific language to provide to your attorney (including our official legal name and address).
Overwhelming task? Not anymore!
Ask for our free Will and Estate Planning Guide, designed to walk you through the process and make it as simple as possible.
We appreciate you including us in your planning.
Making a gift to CSUB in your will or living trust qualifies you for membership in the Roadrunner Legacy Circle. This is our way to thank you for supporting our future as you plan for yours. Read more about the Roadrunner Legacy Circle.