How to make a charity a beneficiary
Giving to charity can be a rewarding endeavor that makes a difference in the lives of people in need. Many people donate throughout their lives, and some people may want to impart a more lasting legacy by continuing to support a charity even after they have passed away.
Incorporating a charity into an estate plan is a great way to continue giving after you pass away. Individuals may not know how to make charities beneficiaries in their wills. A financial planner, attorney or accountant can answer the more complex questions individuals have about naming charities as beneficiaries in a will. In the meantime, this general guide can serve as a solid foundation for individuals who want to give back in their wills.
Most people think of beneficiaries as loved ones, but a beneficiary can be any person or entity one chooses to leave money to, including nonprofit organizations. It’s relatively the same process to name a charity as a beneficiary as it is an individual. According to the resource Trust & Will, first identify the charity that will be supported, including getting its
Employer Identification Number or Taxpayer Identification Number. Next, determine which type of gift to make, which may be a predetermined financial contribution, a gift of property, or other assets like stocks. For large donations like real estate or cars, it may be best to contact the charity in advance to ensure they are able to accept such gifts.
Finally, be sure to include your wishes in an estate plan. A qualified attorney can help clients draft a will that spells out their wishes in detail.
Keep in mind that charities also can be named as beneficiaries on life insurance policies or individual retirement accounts. They also can be listed on bank accounts. Again, people are urged to discuss all options with estate planners to ensure their plans fully reflect their wishes.
When naming a charity as a beneficiary, it can be wise to inform family members and other beneficiaries so no one is caught off guard upon your death. This way the charitable gift is not held up by delays in executing the will.