The recent passing of Steve Jobs has, for many admirers, raised anew the question of anonymous giving: is it better to give without taking credit? As a recent Reuter’s article points out, whether for Jobs or for the average donor, there are some important considerations to bear in mind. Jobs was famous for a great many accomplishments, not the least of which was being a self-made entrepreneur who transformed a garage-sized company into a titanic icon. As a result, he was a powerful force in business and popular culture alike. He also is famous for not being a charitable giver,…
Here is one reason to update your estate planning documents. Parents often forget to update their wills once their children are no longer minors. Therefore, a typical will may state that if neither parent survives, the money goes outright to the kids at age 21. However, once the kids become young adults, your wealth may have increased. Consequently, you may choose to increase the age at which full inheritance can occur. Hence, a typical change may feature graduated payouts of a third of the inheritance at age 25, a third at 30 and the remainder at 35. The thinking behind…
Simply defined, a charitable remainder trust allows you to transfer cash or assets to the trust — from which you may receive income for life or, if you prefer, a fixed term not to exceed 20 years. The income can be paid over your life, your spouse’s life and even the lives of your children and grandchildren. (The guidelines are outlined in IRS code section 664.) In essence, the trust takes advantage of the tax-exempt status of the nonprofit it benefits. Sometimes, giving an asset to charity doesn’t mean you can no longer enjoy benefits from it. Yes, it’s true….
Giving to charity over your lifetime can be powerful. Not only can you make an impact on the charities you care about, but you enjoy personal satisfaction and even charitable deductions. Still, since the tax laws are in a state of flux (and we can only expect them to become more uncertain as the politics in Washington continues to boil over), making substantial lifetime gifts may become more dicey, especially given the fragile economy. As a result, giving at your death may be more attractive and practical. As the Wall Street Journal points out, there is always the option of…
In addition to a spirit of charity, information about the object of such giving is essential. A gift can have greater impact when it is intentionally given to effect an outcome. Interestingly, The Center on Philanthropy at Indiana University recently released the Million Dollar List, an interesting tool for empowering the philanthropist and the nosy alike. This list is a compilation of all available information on publicly-announced gifts of $1 million or more. It is further organized by several metrics and into various charts. The list enables searches by state, organization type, and even individual donors. Browsing through the list…
Estate planning is never easy, if only because it means thinking about protecting your loved ones when you’re no longer around. It’s bad enough making plans to protect self-sufficient heirs who take care of themselves and an inheritance. However, it can be a real challenge when planning for heirs with special needs for a variety of personal and legal reasons. Unfortunately, as The Wall Street Journal Online recently pointed out, with the economy and politics as they are, there are new concerns to bear in mind as you plan. Both the State and federal budgets are strapped for cash and…
While planning for your estate addresses many concerns, likely providing your loved ones is at the top of the list. But what if you can fully trust your loved ones to use your gifts wisely and to take care of themselves responsibly? One common alternative is to cut those problem cases out of the will through disinheritance. Nevertheless, as a recent New York Times article points out, those problem cases are all the more reason to make proper estate plans to protect your legacy and to use the inheritance to promote positive change. Problem cases for inheritances aren’t all “problem”…
For those of you with still-fresh memories of this past Labor Day weekend out at the family cottage, now may be the time to take action to ensure that future Labor Days and summer outings will continue to be enjoyed by your family long after you are gone. In other words, ensure the future of the family cottage and the peace and domestic tranquility of your family through proper estate planning. So, how do you do that? The Wall Street Journal Online recently touched on the topic. The best way to leave an inheritance that includes a family vacation home…
Proper estate planning for your assets depends, in large part, on what those assets are. Common assets in an estate include the obvious, such as real estate, collections, cash, brokerage accounts, retirement funds and stock portfolios. However, there can be less obvious assets requiring special attention. A recent article through Forbes points this out with a fairly common example that is all too easily forgotten: the special estate planning problem of guns. Guns are as natural to own for some as any other asset is. Indeed, to some, their firearms collection is really more akin to an art collection. That…
It's a delicate balance, but parents who employ innovative financial training, carefully chosen trustees and cleverly written trusts can find there's hope for their high-rolling offspring. Estate planning is about taking care of your family and loved ones. But what if you have concerns about how your loved ones will use those assets? You spent a lifetime earning what you have through hard work and thrift. So why pass it along only to be squandered? Would you hand over the car keys to a teen who hasn’t proven he or she can drive? As any automobile insurance agent can attest,…
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