A charity receives only what your documents say it receives. Vague wording, an outdated beneficiary form, or a gift tied to an asset you sold years ago can leave the cause you care about with nothing.
At DeLorme, Hamilton, Raulston, PLLC, we help clients build a charitable gift into their Georgia estate plan so it works the way they meant it to.
A Charitable Gift Can Live in More Than One Document
You can write a gift into a will, a trust, or a beneficiary designation. Each one does a different job.
A will controls what passes through probate. A trust can hold assets and follow your instructions over time. A beneficiary designation on a retirement account or life insurance policy passes outside your will entirely.
That last one catches people. If your will leaves a gift to your church but the account still names someone else, the account follows the form, not the will.
Four Common Ways to Structure a Gift
- A specific gift. A set dollar amount or a named asset, like $25,000 to a local animal shelter. Simple to understand, but if the account is closed or the asset is gone by the time the gift is due, the charity may receive nothing.
- A percentage gift. A share of the estate or trust, say 10 percent. The amount rises and falls with the estate, so the charity shares the same outcome as everyone else named in your plan.
- A contingent gift. One that only takes effect if something happens. A charity might receive a share if a family member does not survive you. These work well as backups.
- An ongoing gift, set up through trust planning, that supports a cause over time instead of all at once.
Which one fits depends on what you want to give and what you want your family to keep. Many plans use more than one. A percentage gift to one organization and a contingent backup gift to another is a common pairing.
Small Drafting Details Cause Big Problems
Charities often have similar names, a separate foundation arm, or a local chapter that is a different organization from the national one. Naming the wrong one is an easy mistake. Using the exact legal name avoids it.
Your documents should also say what happens if the charity closes, merges, or cannot accept the gift. Without that instruction, the gift can create delays or disputes for the people handling your estate.
Clear drafting language and practical safeguards are the point of the work. A gift that is easy to carry out is a gift that actually gets carried out.
Bring Your CPA and Financial Planner Into the Conversation
How you give affects the rest of your finances. We coordinate with your CPA, financial planner, and investment team so the charitable piece fits with your accounts instead of working against them. Tax effects depend on your situation, so that part of the conversation belongs with your CPA.
What a Planning Conversation Looks Like
Nobody needs a finished list of charities to get started.
It starts with your priorities. Which causes matter most, how much you want to give, and what should happen if your plans change.
From there we draft the documents, review them with you, and finalize the plan alongside your existing documents so nothing contradicts anything else.
Add Charitable Giving to Your Georgia Estate Plan
The right gift is the one your documents can actually deliver. If you want to give to a cause that matters to you, our team at DeLorme, Hamilton, Raulston, PLLC can talk through your options. Learn more about our charitable planning services, schedule a consultation, or call us at 706-632-0444.
This post is general information and is not legal advice. Reading it does not create an attorney-client relationship. Every family’s situation is different, so speak with an attorney about yours.