The festive season is upon us, our hearts are filled with joy, gratitude, and a spirit of giving. The profound concept of incorporating charitable giving into your estate plan, turning the season of celebration into an opportunity, to leave a lasting and meaningful legacy means more to your loved ones than you can ever imagine.
Below, Stian De Witt, executive head of financial planning at NMG Benefits, shares a few insightful benefits of charitable giving and its significance for your loved ones.
Fulfilment of personal values
Your estate plan is a reflection of your values and priorities. By including charitable giving, you can ensure that your financial legacy reflects the principles you hold dear. This not only provides a sense of fulfilment for you but also communicates your values to future generations, inspiring them to continue the tradition of giving back.
Family harmony
Incorporating charitable giving can also contribute to family harmony. While it’s crucial to provide for your loved ones, philanthropy can be a unifying force for your family. Engaging your heirs in discussions about the charitable causes you support can foster a sense of shared purpose and instil the importance of giving back. This shared commitment to philanthropy can create a strong family legacy that extends beyond financial wealth.
Tax advantages
Charitable giving in your estate plan can offer significant tax advantages. In many jurisdictions, donations to registered charities are eligible for tax deductions, reducing the overall tax burden on your estate. This can be a strategic way to optimise your financial legacy, ensuring that more of your assets go towards causes you care about rather than being allocated to taxes.
Social impact
Charitable giving allows you to contribute to positive social change. By earmarking a portion of your estate for philanthropy, you become a catalyst for addressing societal issues. Whether it’s supporting medical research, education programs, or poverty alleviation initiatives, your estate can play a role in building a better world.
Ultimately, the gift of legacy through charitable giving is about leaving behind a testament to the values that guided your life. It’s an expression of the belief that wealth, when used purposefully, can be a force for positive change. By intertwining your financial legacy with your philanthropic aspirations, you create a legacy that transcends material wealth, leaving an indelible mark on the world, says, De Witt.
