Estate Planning: Finding a Place for Charity
Controlling what happens to one’s property at death is important to every person, no matter the size of the estate, and taking steps to create a will or trust is a big part of taking control. If a person dies without a will or estate plan, but owning assets in his or her individual name, the likely result is that those assets will be distributed according to the state’s intestacy laws, and those laws probably do not reflect the person’s wishes.
By contacting your attorney and creating or updating your will, you can do what is right for your beneficiaries and can also perpetuate your charitable interests by including desired charitable gifts.
If you wish to make a charitable gift, consider talking to the benefited charity about your plans before your will or estate plan is final. Many people who make a planned gift - be it a bequest or life-income arrangement - fail to discuss it with the charity. Often the reason is a reluctance to discuss one's personal financial affairs with anyone other than one's accountant or lawyer. However, significant benefits can arise from including the charity in the discussion.
First, through discussions with the charity’s development officer, you and your advisors can tailor a planned gift that meets the charity’s future needs and addresses your desires to benefit the charity. This will ensure that your philanthropy has the effect you want.
Second, knowing your plans allows the charity to involve you in the charity's activities during your lifetime and keep you abreast of current programs of the charity, including how the charity is addressing issues of particular interest to you.
Third, the benefited charity will want to acknowledge your special charitable contribution. Charities often go to great lengths to thank donors and publicize gifts to annual and capital campaigns. However, planned gifts are promised gifts that often will not pass to the charity until after the donor’s death. Unless the charity knows about your planned gift, it cannot appropriately thank you. Yet such gifts should be recognized, as they represent generous forethought on your part and often have a profound impact on the charity.
Many charities have established bequest recognition societies to acknowledge and thank donors today for their planned gifts. These bequest society members are often listed in annual reports, invited to special recognition events, and sent correspondence from the charity to keep them up to date.
Creating a personal charitable legacy is a deliberate process that is enhanced by involving the charity in the planning stages. It can help ensure that your planned gift is what you want and affords the charity the opportunity to recognize you today for your future generosity.
