An important instrument that many individuals of means often set up as part of their estate planning toolkit is a trust. By doing so, they provide their heirs or beneficiaries with many tax savings benefits. Many people decide to leave behind some assets to their family members or close friends. Others leave their remaining assets to their favorite organization as part of a charitable trust. Picking the right charity to leave your assets to isn't always easy, however.
It's important that you always thoroughly research an organization before you ultimately decide to include them in your as a beneficiary of your charitable trust. When you're comparing different options, you should delve deeper into their spending habits. You should find out how much each spends on outreach efforts versus administrative costs.
If you prefer to get a feel for how an organization operates before you donate to them, then you may benefit from selecting a local charity to work with. This may give you a better idea of how effectively they use their donated funds and the impact that they're making in the community.
Another benefit to allying yourself with a local organization is that you may have the opportunity to contribute both financially and personally to it. You may be able to shape how it operates by taking a seat on its board or other another leadership role in the organization.
If you ultimately choose a national organization, then you may see it most fit to donate regularly as opposed to via a lump sum upon your death. By doing this, it provides more predictability of income for the charity.
Many larger charities allocate a portion of their budget for certain expected costs. If they can anticipate receiving a certain amount in donations each month, then it allows them to better plan how to serve those who need their help.
Trust disputes do happen -- but they can often be minimized by careful planning at the very start. The more carefully you plan things with your attorney's assistance, the less likely there is to be trouble for the beneficiaries in the future.