Can I Leave a Significant Gift to Charity While Not Depleting My Children’s Inheritance?
Yes, you can leave a significant gift to charity without depleting your children's inheritance. There are several ways to do this, such as:
- Charitable remainder trust: This is a trust that you set up. You transfer assets to the trust, and the trust pays you an income for life. When you die, the remaining assets go to the charity. Your children will not receive any of the assets in the trust until after you die.
- Charitable lead trust: This is a trust that you set up. You transfer assets to the trust, and the trust pays the charity an income for a specified period of time. When the period ends, the remaining assets go to your children.
- Donor advised fund: This is a type of charitable account that you set up. You can contribute money to the fund, and the fund will invest the money and make grants to charities on your behalf. You can designate which charities will receive grants from your donor advised fund.
