In 38 years of estate planning, I have never seen two identical situations. Each client brings a unique blend of family dynamics, assets and tax implications. The most fulfilling aspect for me is the personal side of my work, the guidance and assistance I provide my clients in order to take those pieces and put them together.
Many of my clients are philanthropically motivated, and leaving a bequest is an excellent way for them to make a larger gift to a favorite charity while taking advantage of significant tax benefits.
Wealthier clients are frequently concerned about the effect of leaving a large estate entirely to their children. For these clients, charitable planning provides a good alternative. Additionally, a charitable bequest, either direct or in trust, offers an opportunity to talk with their heirs and to educate them about the importance of philanthropy.
Many people find it difficult to start family conversations about estate planning, but in general I do recommend that clients share their plans, including their charitable intent, with their loved ones. When I complete a new estate plan or a total plan revision for a couple with adult children, I often recommend a family meeting. Mom and Dad can share their intentions with their heirs and I am on hand to answer technical questions about legal, tax and valuation issues.
In recent years, I have noticed that the use of Donor Advised Funds has become increasingly popular. These funds offer an excellent solution for clients who want to give charitably during their lifetime and upon death and wish to select advisors to carry on the role of giving once they pass away. The fund often becomes a learning mechanism for successor advisors — children can be designated as advisors and then carry on the family’s philanthropic legacy after their parents are gone.
