Proper estate planning allows you to shape your legacy after death. One decision to consider as you navigate the process is whether to include legacy gifts in your estate plan.
What Is a Legacy Gift?
A legacy gift is also an effective way to “pay it forward” says Dale Hughes, a Partner at Jeremiah Consulting. Dale vividly remembers how a legacy gift impacted his life and helped him meet the financial demands of going through business school.
Lula Dawit, former Director of Planned Giving at The Woodruff Arts Center in Atlanta, describes a legacy gift as “a gift that is sometimes considered more complicated than writing a check.” Ms. Dawit joined Gaslowitz Frankel partners for a recent episode of Wealth Matters to discuss how legacy gifts can enhance your estate plan. “It [involves] working with perhaps a development director and your attorneys and your financial planners to set up some type of gift that is usually made up through an accumulation of your assets, your charitable intent and coming up with a creative solution to help support an organization that you would like to provide a substantial gift to.”
Why Should I Include a Legacy Gift in My Estate Plan?
But what is the motivation for including legacy gifts in one’s estate? According to Shari Martin, Director of Cobb Community Foundation, “There are numerous factors. One of them is simply something has touched your heart, but there are also situations in life where you have some kind of liquidity event or tax event. [These events may] create an opportunity to truly leverage the dollars you might give to charity in a way that is much more valuable to the charity than to you because of the taxes you would pay to convert them to cash to spend.”
Where Do I Begin?
When deciding whether to include legacy gifts in your estate planning, consider the following:
- Look at your plan and DISCUSS it with your attorney.
- Be as specific as possible in wording legacy gift provisions.
- Even if the gift is anonymous, give the charity or other organization a specific explanation of your intent in making the legacy gift.
- Do your homework. Charities and organizations may change leadership or scope. Ensure that your intent can be carried out despite a change in the focus of your chosen organization.
If you would like to learn more about legacy gifts, listen to our Wealth Matters Radio Show for the full conversation with Lula Dawit, Shari Martin, and R. Dale Hughes.
Having a conversation with your attorney and financial advisor can help you plan and prepare your estate. Making a plan ahead of time – and keeping it up to date as life changes – is the best way to protect your family and your assets after you pass and prevent a dispute.
The attorneys at Gaslowitz Frankel have more than 30 years of experience navigating will and estate disputes. If you have concerns that your estate plan may be susceptible to a dispute, we can help guide you in the right direction. Contact us today at 404.892.9797.
