Planned Giving

"The great use of life is to spend it for something that will outlast it."

William James, American philosopher and psychologist (1842-1910)

Taking Charge of Your Plans

A well-planned will is often the centerpiece of an effective and thoughtful estate plan. When preparing or revising a will, one makes important choices that make it possible to fulfill personal wishes, such as:

Distributing cash, investments, real estate and personal property to family and other loved ones
Providing property management for heirs who may not be prepared to manage their financial affairs
Reducing taxes and estate settlement costs that could otherwise be due
Making "gifts of a lifetime" to favority charitable interests

By preparing and maintaining an up-to-date will, you may save your heirs from problems that can arise when you fail to plan. In spite of this, more than half of adult Americans reportedly do not have a will.

Answers to Frequently Asked Questions

Q: Who needs a will?

A: In most cases, those who own property and are concerned about who ultimately receives it need a will. Regardless of your age or financial standing, it is important to take charge of deciding who will one day enjoy the property you have accumulated over a lifetime.

Q: Do both spouses need wills?

A: Yes. Husbands and wives share the same need for making wills, even if much of their property is jointly held.

Q: Is it possible to create a trust in my will?

A: Yes, especially if you want to provide for asset management for one or more heirs, delay distribution of property to minors until they are of age or address the special needs of other heirs. Some people also make use of what is known as a "living trust" in combination with a will to help accomplish their planning objectives- both now and in the future. You may also wish to include special trusts in your will designed to help reduce or eliminate state and federal taxes. This can result in passing the largest amount possible to your heirs.

Q: What if I have a will that no longer meets my needs?

A: Your will should be reviewed and periodically updated to reflect changes in your life--marriages, births, deaths, financial gains or losses, and your personal goals. Tax law changes may also prompt a review of your plans. Minor changes can be accomplished with a codicil, a simple amendment to an existing will. More substantial changes may require the drafting of a new will. Whether the changes are minor or extensive, always consult with your attorney when considering a revision, as handwritten changes may completely invalidate your will.

Q: How much does it cost to make a will?

A: The fees associated with drafting a will can be quite reasonable, especially when you consider that its purpose is to direct the distribution of property you have worked a lifetime to accumulate. Taxes and settlement costs that can be avoided with a well-planned will can amount to many times the cost of preparing a will. The actual cost of a will depends on several factors, primarily the size of your estate and the complexity of your plans. Your attorney will be happy to discuss fees in advance.

Q: What if I would like to include gifts to a charity in my will?

A: There are a number of ways to combine charitable gifts (also known as bequests) with your estate plans. Gifts can take the following forms:

A specific amount: You designate that a particular dollar amount be transferred to one or more charities
Specific property: You can designate that a particular asset, such as real estate, artwork or other valuables, be used to fund a charitable gift. Such a bequest should be worded carefully, as the assets you own may change over time.
A percentage: A percentage of your estate can be designated for charitable purposes, thus ensuring that your gifts remain in proportion to other bequests
All or a portion of the residue: You can provide that charitable gifts be made from what is left after all other gifts to loved ones have been fulfilled.

Additionally, you may include provisions for charities through beneficiary designations of life insurance proceeds or retirement plan assets that may remain at death.

Q: How can a charitable bequest benefit my charitable interests as well as my loved ones?

A: Some would like to make charitable bequests but are also concerned about providing for the financial security of a surviving spouse or others. There are many ways to make gifts to charity while first providing for others. For example, it is possible to arrange income for life or another period of time for a spouse or other loved ones while a charitable interest receives whatever eventually remains.

Conclusion

Your will and long-range plans deserve careful attention. If you would like to create a charitable bequest in your will, please contact us for more information and the specific legal language that should be used. Remember that such gifts can be made in memory of your loved ones. A charitable bequest is a meaningful way to memorialize someone special to you.

We will be pleased to assist you and your advisors as you consider the charitable dimensions of your plans.

The purpose of this information is to provide general gift, estate and financial planning information. It is not intended as legal, accounting or other professional advice. For assistance in planning charitable gifts with tax and other financial implications, the services of appropriate advisors should be obtained. Consult an attorney for advice if your plans require revision of a will or other legal document. Tax deductions vary based on applicable federal discount rates, which can change on a monthly basis. Some opportunitites may not be available in all states. Copyright 2004 RFSCO, Inc. All Rights Reserved.