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Are Your Heirs Stuck with Your Charity Pledges?

How will your heirs handle charity donations

Generally speaking, if you promise to give something of value to a charity, that promise constitutes a legal debt. There are nuances and exceptions, but your death is not normally one of them.

Should you pass away leaving an unfulfilled, promised charitable donation to a nonprofit or charity, your heirs will have to deal with it in one fashion or another. Here is a quick rundown of what you need to know about leaving money to a charity and how to prevent problems in the future.

Is It a Legal Contract?
To be legally enforceable, your charitable pledge must contain all five of the elements of a legal contract, listed here:

  • Offer and acceptance – means you offered to make a future gift to a charity and the charity accepted that offer.
  • Consideration – refers to something called “exchange of value.” With a charitable pledge this usually means that you promise to make a gift and the charity promises to use that gift for some specific named purpose.
  • Legal intent – simply means that everything about the contract has to be legal. If you pledge a gift and the charity promises to use it to commit a crime, the pledge is not enforceable.
  • Competent parties – confirms that both you and the charity are legally capable of entering into a contract.
  • Legal form – means the contract must follow all appropriate laws and guidelines, including that it be in writing if that is a requirement in your state. (For more see: Contract Requirements.)

Read more from this Investopedia article: Are Your Heirs Stuck with Your Charity Pledges?https://www.investopedia.com/articles/taxes/012617/are-your-heirs-stuck-your-charity-pledges.asp#ixzz54n0dL4EW

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