3 Ways to Incorporate Charitable Giving into a Maryland Estate Plan

 Posted on October 21, 2024 in Estate Planning

Planning for the future can be challenging, especially when it involves preparing for a time when you may be incapacitated or no longer alive. However, creating an estate plan is an incredible way to give yourself peace of mind while reducing stress for your loved ones. With an estate plan, you can make all the important decisions in advance, so your family is not left trying to figure out what you might have wanted. Additionally, estate plans allow you to contribute assets to charities that are meaningful to you. If you are considering charitable giving in your estate plans, contact a qualified Bethesda, MD estate planning lawyer to learn more.

Charitable Bequests

One of the most common ways to ensure that your estate plan includes charitable giving is by incorporating charitable bequests. You can include provisions in your living trust or will to allocate assets to a charity of your choosing upon your passing. This method offers significant flexibility since you can adjust the amounts and the beneficiaries in your lifetime. It is also relatively simple to include charitable bequests.

Charitable Remainder Trusts (CRTs)

A charitable remainder trust (CRT) is a way to provide income for yourself or other beneficiaries for a specified period, and whatever remains in the trust afterward can be given to a charity of your choosing when that term ends. The main benefits of a CRT are that it generates reliable income and offers various tax benefits.

Charitable Lead Trusts (CLTs)

A charitable lead trust (CLT) is essentially the opposite of a CRT. You predetermine a specified period during which the trust will generate income for a charity, and after that period, any remaining assets are given to the beneficiaries you have selected. The benefits include an immediate impact on the charity of your choosing, the potential for estate tax reductions, and the ability for your beneficiaries to easily receive assets.

Contact a Silver Spring, MD Estate Planning Lawyer for a Free Consultation

If you are thinking about how you want to arrange your assets now so that they can benefit your loved ones and meaningful charities in the future, speak with a qualified Rockville, MD estate planning attorney about how to incorporate charitable giving in your plans. At The Eleff Law Group, we know that every client has different needs and wishes, and we are passionate about helping you create an estate plan that best suits your needs. Call us at 301-857-1990 to schedule a free consultation.