Legacy Giving: August is National Make-a-Will Month!

August is National Make-A-Will Month

Did you know a surprising 2 out of 3 Americans have no estate planning documents? (Caring.com, 2023 Wills Survey). There’s no better time than the present to review your estate plans – or get wills and trusts in order if you haven’t done so yet – and consider a legacy gift to charity. 

Estate planning can be an uncomfortable topic because, by definition, it requires acknowledging your mortality. This is likely part of the reason that 40% of Americans say they won’t even consider putting a will in place unless or until their life is in danger (Caring.com, 2023 Wills Survey). Many people think charitable giving, though, is a much more pleasant topic. That’s why legacy giving is a topic that can help break the ice and pave the way for the broader, essential conversation about overall estate planning. 

Charitable giving is an important part of any estate planning conversation. Your charitable giving intentions and the possibility of establishing legacy gifts should be a routine and standard topic of any financial or estate planning discussion, right alongside provisions in an estate plan for family and loved ones. 

WHAT YOU NEED TO KNOW ABOUT LEAVING A LEGACY:

Q: What is a legacy gift to a charity? 

A: A post-life gift(s) that you structure in advance. Legacy gifts are often referred to as planned giving. 

Q: What assets can be used to make a legacy gift?  

A: Like the gifts to charity that you are already making – cash, stock (especially highly-appreciated stock), real estate, life insurance, an IRA beneficiary designation (which is extremely tax effective) – are examples of assets that can be the subject of a legacy gift. A legacy gift can be expressed in your planning documents as a dollar amount, percentage of the whole, or a legacy gift of the assets themselves. You will want to choose those assets carefully, and should enlist the expertise of your attorney and/or financial planner for assistance.

Q: How is a legacy gift actually made?  

A: Legacy gifts are typically spelled out in detail in a will or trust documents. This is especially important because after you have passed, too much is otherwise potentially subject to hearsay or conflict. 

Q: What are some particulars to be aware of? 

A: Most legacy gifts can be revoked or altered through beneficiary or will changes during your lifetime. This is an important feature to remember for those who want to include charitable giving in their estate plans but like the idea of flexibility as their overall family and financial picture changes over the years. 

HOW CFHZ CAN HELP 

Q: What tools does the Community Foundation offer to help? 

A: A particularly useful technique is to establish a fund at CFHZ that spells out your charitable distributions upon death to specific organizations. Your estate planning documents can, in turn, simply name the fund as the beneficiary of charitable bequests. You can adjust the terms of the fund anytime during your lifetime to reflect evolving charitable priorities. 

If you would like to speak to someone at CFHZ about your legacy giving plans, please contact Colleen Hill, Vice President of Development & Donor Services, at chill@cfhz.org or by calling 616–994–8853. 

We always encourage donors to first seek the advice of their legal, financial, or tax advisors when considering a gift of non-cash assets.