Using your will or a trust, you can name a charity directly. The benefit here is that it’s the simplest method, and many charities might prefer to receive assets in a big lump sum like this. This certainly is not your only option, however, and your New Jersey estate planning attorney might be able to help you figure out a better way to pass on assets.
Retirement Asset Donations
Charities do not pay income taxes, so a retirement account donation made to a charity may be more beneficial than passing on those funds to a person. Since individuals have to pay federal and local income taxes on proceeds from a retirement account, a charity may be a preferred option. Your estate tax burden is also minimized since the gift may qualify you for a federal estate tax charitable tax deduction.
Partner With a Community Foundation
Some nonprofits help individuals put together legacy funds to support community causes for years to come. You can talk more with your estate planning attorney about your options and how this can be a gift that keeps on giving.