Philanthropy Through Trusts and Estates Isn’t Just for the Ultra-Wealthy

From the desk of Mark Browning | Senior Vice President, Wealth & Trust Advisor

Rethinking Philanthropy and Estate Planning

When people hear terms like philanthropy, trusts, and estates, it’s easy to assume these strategies are reserved for the ultra-wealthy. In reality, that couldn’t be further from the truth.

Individuals at nearly any income level can use thoughtful estate planning to support causes they care about and leave a meaningful legacy.

In fact, charitable planning can be especially powerful for those who don’t have children or close family members to inherit their assets. Instead of leaving everything behind without direction, you can intentionally support nonprofit organizations that align with your values.

Ways to Incorporate Philanthropy Into Your Estate Plan

Two common and accessible ways to incorporate philanthropy into your estate plan include:

Leave a Bequest in Your Will

One of the simplest ways to give is through a bequest in your will. This can take several forms:

• A percentage of your estate
• A specific dollar amount
• The remainder of your estate after other gifts are distributed

No matter which option you choose, it’s important to include the nonprofit’s full legal name to ensure your gift goes exactly where you intend.

Set Up a Charitable Remainder Trust

A more structured option is a Charitable Remainder Unitrust (or Charitable Remainder Annuity Trust), which can be established through your will and funded after your passing.

How It Works

• The trust is funded with your assets—often pre-tax retirement accounts like an IRA or 401(k)
• Your chosen beneficiaries (such as family members or loved ones) receive income from the trust for a term of years or their lifetime
• After that, the remaining assets go to one or more charities you’ve selected

This approach allows you to support both people and causes you care about, while potentially offering tax advantages along the way.

Communicate Your Intentions

While it’s perfectly fine to give anonymously, there can be real benefits to letting organizations know about your plans. By doing so, you can:

• Share your vision for how the funds should be used
• Work with the organization to create a Gift Agreement or Gift Use Memo
• Ensure everyone is aligned and avoids confusion in the future

Leave a Legacy That Reflects Your Values

Philanthropy isn’t about the size of your estate—it’s about the impact of your intentions. With a bit of planning, anyone can create a legacy that reflects their values and supports the causes they believe in most.

Extraco Wealth & Trust can assist by working alongside your legal and tax advisors and serving as a Trustee for Charitable Trusts, as well as serving as the Executor for your estate to ensure your wishes are carried out as intended.

Please reach out to an Extraco Wealth & Trust Advisor today to discuss your estate and wealth planning needs.