Extend your philanthropy beyond your lifetime

Succession plan FAQs

What methods are available for allocating assets among successors and/or charitable beneficiaries?

1.    Whole or decimal percentages method
In your succession plan, you may allocate to successors (individuals) and/or charitable beneficiaries (organizations). For example, you may leave half of your account assets to your son or daughter to manage and the have the other half granted to the Red Cross. These allocations can be made in whole or decimal percentages, rounded to the hundredth place. Your allocations to successors and charitable beneficiaries must total 100%. You may use this method alone or in combination with the fixed amount method described below.

 

2.    Even split method
The even split method allows you to distribute allocations evenly between your successors and any charitable beneficiaries you designate. The allocation will appear as a fraction on your account statement. You may use this method alone or in combination with the fixed amount method described below.

 

3.    Fixed amount method
You may select a fixed dollar amount to be distributed to your successors and/or beneficiaries. Another option is to combine with one of the methods described above. Any successor or charitable beneficiary with a designated fixed amount will be considered first, and the remaining funds will be distributed through the secondary method elected.

 

Please note: Any time the fixed amount method is selected, you must allocate at least one other successor or charitable beneficiary using a different method (this can be either percentage – whole or decimal – or even split). If the account balance is higher than the fixed amount at the time the succession plan is enacted, the secondary method will be used for distribution of the amount above the fixed amount. If the account balance is lower than the fixed amount at the time the succession plan is enacted, the secondary method will be used for distribution of the entire account balance. 

 

For more information about this process, contact ask@schwabcharitable.org.
 

Beyond my lifetime, what account privileges do other account holders and account users retain?

Other account holders automatically succeed to the account after your lifetime. For example, if you and your spouse are both listed as account holders, your spouse remains on the account and becomes the primary account holder beyond your lifetime. Any account users also continue with the same privileges they had originally. 

 

Your succession plan will not be enacted until after all account holders' lifetimes. Account users are removed from the account at that time. 
 

What role do my contingent successors or contingent charitable beneficiaries play?

If all of your listed successors are either deceased, unwilling to serve, or ineligible, then your contingent successor(s) may have privileges. Similarly, when your succession plan is enacted, if none of your designated charitable beneficiaries are eligible to receive a grant for any reason, then your contingent charitable beneficiary recommendation(s) will be considered.