Episode Summary

In this episode, Gordon and Jenna discuss the unique challenges of managing charitable beneficiaries in estate administration. With charitable giving on the rise, executors must understand legal responsibilities, tax implications, and best practices when working with charities.

Learn how to engage with charities, determine if they accept assets in kind, and ensure transparent communication to avoid issues in the estate process.

Key Takeaways

1. Charitable Giving Requires a Will

• A charity cannot inherit under intestacy laws—it must be named in a will.
• A will allows for structured giving, which may provide tax benefits for the estate.

2. Find the Right Charity Contact

• Many charities have estate administration departments—don’t just send documents to a general inbox.
• Larger charities may have approval processes that take time, so start conversations early.

3. Consider Transferring Assets in Kind

• Some charities accept stocks, real estate, or private company shares instead of cash.
• Directly donating marketable securities may reduce capital gains tax.

4. Work with an Accountant Early

• Tax laws governing charitable donations change over time—get expert advice.
• Proper structuring can reduce taxes and maximize estate value.

5. Understand the Difference: Residual vs. Fixed Gifts

• Residual Beneficiary: Receives a percentage of the estate, meaning they can review estate accounting.
• Fixed Amount Beneficiary: Receives a set sum and typically has no oversight rights.
• Residual gifts require more documentation and could lead to additional scrutiny.

6. Transparency & Regular Communication

• Charities track bequests and may follow up for updates.
• Executors should provide regular accounting to avoid disputes.

7. Timing Matters

• Fixed gifts are often paid out earlier, while residual gifts may be delayed by estate processes.
• Charities may have internal approval steps before accepting non-cash donations.

Final Thoughts

For Executors:
✅ Contact charities early to discuss requirements.
✅ Work with legal and tax professionals for compliance.
✅ Keep detailed records and communicate regularly.

For Estate Planning:
✅ Decide between a fixed or percentage gift.
✅ Review tax benefits of charitable giving.
✅ Clearly document your wishes in your will.

Charitable giving can leave a lasting legacy, but proper planning is key.

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📌 See you next time! 😊

Hosts:
Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
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Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
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