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Aug 13 2015
Discuss Planned Gifts With The Charities That Will Receive Them

Posted in estate


If your estate plan includes charitable donations, discuss any planned gifts with the intended recipients before you finalize your plans. This is particularly important for donations that place restrictions on the charity’s use of the gift, as well as donations of real estate or other illiquid assets.

Some charities have policies of rejecting gifts that come with strings attached. And many charities are reluctant to accept gifts of real estate or other noncash assets that may expose them to liability or require an investment in order to convert the assets into operating funds.

If a charity rejects your gift, the assets will end up back in your estate and will go to any contingent or residual beneficiaries. If these beneficiaries aren’t other charities, rejection of the gift may increase your estate tax liability.

Real estate is particularly risky for nonprofits. The charity may be exposed to liability for environmental issues, zoning and building code violations, and other risks. It may require a cash investment to pay the mortgage or maintain the property.

If you’d like to make a charitable donation through your estate plan, we can help ensure that you’re taking the proper steps so your wishes are carried out as you intended.

Last Updated by Admin on 2015-08-13 11:46:16 AM

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