There are many ways to give to charity after your death in Texas. Look into all of the possibilities to put together the best plan based on your unique situation.
Charitable lead trust
A great way to include charities in your estate planning is to set up charitable lead trusts. The charity would receive either a percentage or specific amount over a designated time period. Once the time period expires, the remainder of the money goes to a person or group of people that the donor specifies.
You could set up a donor-advised fund to grow the money you plan on giving to charity. Donor-advised funds may come with tax advantages, such as no income taxation and no capital gains tax.
Pass on your retirement account
It’s possible to name a charity as the beneficiary of your retirement account. Charities won’t have to pay estate or income taxes on this money.
A split-interest trust benefits both you and the charity of your choice. When you transfer money into the trust, you receive a tax deduction. After your death, the split-interest trust passes on to the charity.
Stocks are a common way of passing on wealth to charities. If you sold the stock, you would have to pay capital gains tax on it. By giving the money to charity, you can bypass taxation for both yourself and the charitable organization.
When you want to pass on part or all of your wealth to charities after your death, there are usually better ways of doing so than directly giving them money. With some strategizing, you can figure out the best way of dividing your estate among those you want to receive it.