As environmental challenges and social responsibility become increasingly prominent, many individuals are choosing to align their estate planning with their personal values. One of the most powerful ways to do this is by including green and charitable legacies in one's will.
These legacies offer a way to ensure that an individual's final act has a lasting and positive impact on the causes they care about, whether that be protecting the planet, advancing education, supporting the arts, or helping vulnerable communities.
What Is a Charitable Legacy?
A charitable legacy is a gift left in your will to a registered charity. It can take various forms, including:
- A fixed sum of money (pecuniary legacy);
- A percentage of your estate;
- Specific assets, such as property, shares, or art; and/or
- A residual gift—what's left after other bequests are made.
Charitable legacies are flexible and can be structured to reflect one's priorities and capacity, no matter the size of the estate.
Why Leave a Charitable Legacy?
Creates a lasting impact: A gift can support causes long after an individual's lifetime, funding vital research, community projects or environmental preservation.
Tax efficiency: In Bermuda, gifts to registered charities are exempt from stamp duty, potentially reducing the tax burden on your estate.
Honours values: Including a charitable bequest helps define your legacy in line with your beliefs.
Going Green with Estate Planning
Environmental concerns are driving a new type of legacy with green bequests. These can include:
- Donations to environmental charities focused on conservation, reforestation, renewable energy, or wildlife protection;
- requests for sustainable funeral arrangements, such as natural burials or biodegradable coffins;
- encouraging carbon-conscious estate management, including eco-friendly real estate handling or divesting from fossil fuels; and/or
- Leaving land to a conservation trust, thereby preserving it from development.
Some testators also specify how their money is to be invested until it is distributed, favouring ethical or green investment funds.
How to Leave a Green or Charitable Legacy
Speak with an attorney: Make sure your wishes are legally valid and clearly expressed.
Choose charities carefully: Ensure that they are registered and reputable. Consider talking to the charities about how your legacy can be applied.
Communicate with family: Letting loved ones know your intentions can reduce confusion or disputes later.
Update your will: As circumstances change, so should your estate plan. Review it regularly to make sure it reflects your current wishes.
Conclusion
Green and charitable legacies go beyond generosity; they're about shaping the future. Whether supporting a cherished cause or helping preserve the environment for the next generation, your will can be a powerful tool for good.
Planning today ensures that your values live on and that your legacy makes a real difference. Reach to the author of this article or your usual Conyers contact for more information.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
