July Financial Professional Perspective | InFaith Community Foundation

July Financial Professional Perspective

Four Benefits to Making Charitable Gifts Upon Death 

Making charitable gifts that occur upon death is one of the easiest, and perhaps one of the most flexible ways that your clients can make a difference through charitable giving. Donors make these gifts through their will or living trust, or by making a charity the beneficiary of their IRA, 401(k) and 403(b) plans, annuities or other qualified assets to a donor advised fund.

“It can take as little as five to 10 minutes to update a beneficiary designation that can make a lasting impact to your clients' favorite charities for years to come,” says InFaith Charitable Gift Planner, Ben Boline, J.D. “Ultimately, you're helping your clients support the causes
that mean the most to them in a tax efficient way.”

A Simple, Flexible Process 
Ben recently worked with a financial professional who had a client with 20 different accounts across a variety of financial service providers. Wanting to leave their accounts to multiple charities, the Financial Professional suggested that the client use a donor advised fund, rather than going through the process of updating each beneficiary designation. 

Now, when the donor wants to add or change a charity, they contact InFaith directly to update their fund agreement. Through this collaboration with InFaith, the FP no longer has to account for additional time in order to help update the clients beneficiary designations. 

Here are four benefits to your clients:
1. Make a larger, more significant gift upon death than while living.

Perhaps your client is not in the position to make a sizeable charitable gift at this point in their life. Why not give later, upon death? This provides a way for your clients to make a difference for future generations.

2. Retain control of the asset during their lifetime.
Want to make sure that your client has the assets they need while living? When a donor makes a gift through their will or names a charity as a beneficiary, they retain ownership of the asset and full use of it until death. Your clients will also have the flexibility to make changes down the road. 

3. Give all or a portion of the asset.
Whether it's their will or beneficiary proceeds, your clients can name charities to receive all or a percentage of the asset upon death. This gives donors the flexibility to include their children, grandchildren or friends, and charity. You can also name the charity as a contingent beneficiary. Here, the donor would give to the charity only after the deaths of other named family members or friends.

4. Avoid estate taxes. 
When your clients make a charitable gift from their estate, this gift is not counted in the overall estate valuation and is not taxed. 

InFaith is Here to Help
To learn more, download our Giving to Charities Later, Upon Death Product Sheet. Contact an InFaith Gift Planner at 800-365-4172, or visit our website

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