Estate Planning and Planned Giving

Estate planners often begin by having their clients complete a detailed checklist about themselves and their interests. Then, with facts gleaned and some intent discovered, the planner moves to the primary question: "How would you want your property disposed of if something happened to you?"

Hopefully, the client will know. People who recognize their mortality and thoughtfully plan how to give away their estates focus on their lives and reward those individuals and organizations, such as your favorite charitable organizations, they have come to love. They have no obligations to anyone but themselves and their own strong wishes.

That's why many estate planners suggest that clients carefully review their checklist a second time and answer this question: "Do you want to leave anything to any charitable organizations?"

A Step Beyond
People who answer "yes" to this second question have a whole new realm open up to them: planned giving.

Planned giving is about finding ways to make charitable gifts from your estate while enjoying financial benefits for yourself, as well. For example, if you know you'd like charitable nonprofits to receive part of your estate at your death, you could place the assets in a charitable remainder trust while you're living.

With a charitable remainder trust, you can be paid the income from the trust assets for the rest of your life. The year you establish the trust, you receive a charitable deduction for the portion expected to remain for us after your lifetime. Plus, the trust assets will be removed from your taxable estate, so they're not subject to estate tax.

Thus, estate planning and planned giving, working together, enable you to provide in the manner you want for the people and the charitable organizations, like charitable nonprofits, that you care about.

To Sum Up
First, set your goals. Then review the strategies at your disposal for distributing your estate. Make your choices. And complete a will. As years go by, you may want to change your will, so be sure it always reflects your current wishes.

Please contact Mary Ludwig, Development Director at 712-732-5127, for more information.

The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.

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