Many people may have valuable personal property such as artwork, collectables etc. in their possession that could someday benefit both a favorite charitable organization as well as their heirs. If you own such personal property with potential significant value, you might consider designating it as a future gift to a charity from your estate.
This plan has several advantages for you:
You are promising to donate your personal property to a charity now but able to continue to enjoy it during your lifetime.
Your personal property can fulfill a commitment to a nonprofit as an endowment gift and will be recognized based on the current appraised market value.
Your estate will receive a tax deduction based on the appraised market value when the charity actually takes possession in the future. The deduction is not dependent on the amount they receive when they sell it.
By donating the property out of your estate rather than during your lifetime, there are no restrictions on which charities can receive the gift in order to obtain a full charitable deduction.
By designating the personal property now your heirs will not be burdened with dispensing with it later and it will not be included in the valuation of your estate.
In summary, this is an easy way to fulfill your desire to provide for the future needs of a favorite charity and at the same time assist your heirs. If you have any questions please contact us and we will be happy to provide additional information. — Jim Friedman
Please login to leave a comment