Here’s three words that the majority of us probably think “don’t apply to me”—charitable wealth transfer. After all, you may reason, I consider myself middle income—I do ok, I’m comfortable, but I don’t have to concern myself with passing along a big estate. I’ll just give everything along to my spouse and kids.

You might be surprised to learn, however, that charitable wealth transfers can be for smaller amounts too—and that they don’t have to involve trusts. There are a number of benefits involved in putting together a charitable wealth transfer—of course, first and foremost, a charity that you care about benefits. And a fact you might not even have considered…said charity can benefit within your lifetime! So if there is a group or an organization that you truly believe in, and especially if you’ve been actively involved…you can put some money to work for them, and see the benefits of that donation while you are still alive to enjoy the feeling that generosity can bring.

You’ll need to talk with a financial advisor, and review your portfolio and overall financial picture. What you may find as a result of that conversation is that passing along a piece of your “estate”—even a reasonable or modest amount—can have a big impact on the charity you choose and have tax benefits for you, that are not inconsequential. Here is a simple example that illustrates the case of an investor that has $20,000 in savings, in excess of what he and his advisor have determined to be a “safety fund”.

1) Start with $20,000.
2) Put $11,800 into transfer plan. This amount will be worth same $20,000 at death.
3) Take the balance of $8,200, and gift it to a charity today…this donation is tax deductible.
4) The investor still has a $20,000 death benefit to give to charity or will to a beneficiary of his choosing.

As you can see, charitable wealth transfers aren’t just for those “mega-rich” investors with millions to pass along to worthy causes. Quality, well-run charitable organizations know how to put even modest donations to work for a good cause, and with the added benefit of a tax deduction from your overall estate, it is a win-win situation for all.

It’s important to consult with a financial advisor or with an accountant to work through the particulars, but a plan such as we’ve outlined above is fairly simple to put into place and is not expensive to structure. Consider how it would benefit your financial picture and how a favorite organization might be positively impacted, and then ask your financial advisor about charitable wealth transfers.