In the event that you intend to use your estate plan as an opportunity to pass on gifts to charity, it is important to have a conversation with that charity in advance. The reason for this is they may not know how to take an unplanned gift. If you have any charitable donations listed inside your estate plan, make sure you discuss them with these intended recipients before you finalize your plan
This is really important for any donations that could put restrictions on the charities use of the gift and also for any situations in which you donate real estate or other illiquid assets. Some charities have a policy of rejecting certain gifts that come with any strings attached. This means that they will only accept unrestricted gifts. Sometimes charities are hesitant about accepting real estate or other non-cash assets because this could potentially expose them to liability or require that they make an investment in order to change those assets into operating funds.
The property may end up back in your estate if the charity does not accept the gift and then it will be responsible for going to residual or contingent beneficiaries. If the beneficiaries are not other charities who will accept the gift, rejection of that gift could generate estate tax liability. It is important to have a conversation with an experienced estate planning attorney in Pasadena in advance to discuss your options.
