The Charity Child

Your Community As Part of Your Family

When thinking about preparing a Will most individuals divide their estate among their immediate family. They want to be sure that they can provide for the needs of their loved ones. But what people may not consider are the possible tax consequences to this decision. Ask yourself, “if you had a choice to give a portion of your estate to the government in tax or leave a gift to a charity”, which one would you prefer? The answer is probably obvious, but it might still be difficult to know how to make the gift a reality. One creative way to give to charity is to include a Charity Child in your Will planning. Some worry that the tax burden placed on their estate will prevent their children from inheriting all that they should. Some feel it’s not their problem—“the children will work it out.”

Including a Charity Child could be of real benefit to those who are interested in providing for their loved ones, leaving a legacy to their community and limiting their estate to the exposure of estate taxes.

The Charity Child Concept

Here’s an example:

Through careful estate planning a family with three children divides their estate into quarters, leaving the last quarter to go to not-for-profits or charities that have touched their lives. Upon the passing of both parents, the Will outlines that each child will receive one quarter of their parent’s estate. The fourth quarter is dedicated to the Charity Child and directed to the causes that are dearest to their hearts.

By placing a charitable bequest in one’s Will, the estate will benefit and receive a charitable tax receipt for the gift. This will help to offset any taxes payable to the government. The children will still receive the portion of the estate generously left for them as well. What is also very important is the children can celebrate their parent’s legacy of making a difference in the community through their philanthropic dreams.