Donations in a will: Supporting charitable organizations with an inheritance

What happens to my assets when I am no longer here? And can I still do some good with them? Together with Erblotse, a digital platform for inheritance matters and estate planning, we answer the most important questions about legacy giving in this article.

More and more people want to achieve a positive impact beyond their lifetime with what they leave behind. A gift in your will is a simple and effective way to do this. It allows you to dedicate a portion of your estate to one or more non-profit organizations – regardless of whether you have a large fortune or not.

📚 Contents

1. Legacy giving: What is it?

2. Donating your estate: Legally secure with Erblotse

3. Taking advantage of tax benefits

4. Which organizations can I support with a legacy gift?

5. Conclusion

Legacy giving: What is it?

By including a non-profit organization in your will, you connect your legacy with a long-term social impact. In a so-called charitable will, you specify that an organization will receive a portion of your estate – either as an heir or as a legatee.

The advantage: Non-profit organizations are exempt from inheritance tax. Therefore, your money directly benefits the good cause in its entirety.

Possible wording in the will could be, for example:

"I bequeath to organization XY a sum of money in the amount of … euros."

Or: "I appoint organization XY as a co-heir with a share of … percent."

Erblotse helps with its tool in drafting legally compliant wording and generating the digital will.

Donating your estate: Legally secure with Erblotse

There are many questions surrounding the topic of donating an inheritance: Who is allowed to receive what? How are statutory shares regulated? And what tax benefits does a legacy gift bring?

Erblotse supports people in clarifying these exact questions – digitally, free of charge, and with verified professional quality. The platform offers not only a simple introduction to estate planning but also a step-by-step will generator that allows you to create a legally valid will.

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Taking advantage of tax benefits

Anyone who donates their estate to a non-profit organization generally saves on taxes:

• Inheritance tax is waived, as non-profit organizations are tax-exempt.

• You can also benefit from tax advantages through gifts made during your lifetime.

• When establishing a foundation, the following applies: if it is non-profit, even larger assets can be written off for tax purposes.

Particularly for larger estates, it is worth considering whether a combination of a lifetime gift, a legacy gift, and foundation design is the most sensible path. Here, too, Erblotse accompanies you with suitable tools and expertise.

Which organizations can I support with a legacy gift?

Basically, with a legacy gift, you can support any non-profit organization that you deem worthy of support – whether it's the local neighborhood association, or organizations in the fields of environmental protection, education, health, or social justice. If you want to support multiple organizations in your will that you have already donated to regularly during your lifetime or that are particularly close to your heart, establishing a bcause Foundation can be a practical option. This functions like a digital foundation (without the financial and legal administrative burden) and allows you to create a list of beneficiary non-profit organizations without having to list each one individually in the will.

The idea behind it is simple: Instead of naming individual organizations directly in your will, you simply refer to your bcause Foundation. In this case, the beneficiary is not directly an organization, but the charitable bcause trust foundation, which manages the money in your spirit. It is best to designate family members or trusted individuals during your lifetime who will have administrative access to your bcause Foundation and who can implement your wishes for the charitable use of your estate after your death. In this way, you can also be sure that your estate will be passed on exclusively for charitable purposes and according to your wishes.

Conclusion

A legacy gift is more than just a last will and testament – it is a conscious decision to use one's own inheritance to benefit society. With Erblotse, you will find legal security and guidance. And with bcause, you have the opportunity to set up your digital foundation during your lifetime, making your commitment permanently visible even after your death.

This article was created in cooperation with Jochen Leidig from Erblotse.