THE WILL TO PLAN

Although it may feel life is busier than ever, the Bureau of Labor Statistics claim five hours of each day is “leisure” time spent watching TV, reading, playing sports or games — but not estate planning. A Harris Interactive poll supports that some subjects would prefer doing taxes or getting a root canal!

Most Don’t Have a Will
Do you have a Will, one of the most basic estate planning documents? Many don’t, including parents with minor children, a document that would name back-up parents in the event the children are orphaned. What about a Living Will to direct end-of-life medical procedures? The same Harris study found half of those over 65 have a financial planner to handle the funds but no healthcare power in place, even though we realize the need to get these basic planning plans into place.

Despite Good Intentions
Psychologist Piers Steel of the University of Calgary says procrastination keeps folks from planning. However, his studies in his book, “The Procrastination Equation,” revealed that putting off making these quite difficult decisions actually creates a sense of more pressure and lowers the overall well-being of an individual, including health and salaries!

Beating Procrastination
Having a sound plan in place provides peace of mind. Steel says the trick is to reframe what appears to be a broad, ambitious task into concrete, manageable, immediate goals.

Start by calling and scheduling an initial consultation. Focus on one quick, easy decision at a time.

Pick up the phone.

The Charitable Remainder Trust:
A Great Way to Donate

Americans are known for their individual and collective generosity, whether in good or bad economic times. Interestingly, the charitable tax deduction has been part of the Internal Revenue Code since the federal taxation of taxpayer income began. Accordingly, taxpayers have some control over whether to be involuntary philanthropists (paying taxes) or to be voluntary philanthropists (making charitable gifts). One practical roadblock to making substantial gifts is the continuing need of many taxpayers for the lifetime income generated by their assets, even highly appreciated assets that generate little or no income. Fortunately, charitable trusts are designed to allow you to donate a generous gift to your charity, while benefiting yourself and your loved ones with tax and non-tax benefits.

The Charitable Remainder Trust
The Charitable Remainder Trust (CRT) is a popular form of “split-interest” charitable gifting. In short, a CRT can help you increase your current income, enjoy current income tax deductions and eventually leave a substantial financial legacy for your favorite charity (or charities).Is something this good for taxpayers and charities too good to be true? No, actually Internal Revenue Code § 664 was enacted in 1969, specifically authorizing “split-interest gifts” like the CRT. The federal government sought to encourage taxpayers to support private sector charities by making it possible for charitably-minded taxpayers to give and receive.

If you think a split-interest gift like this might fit into your charitable plans, call our office to learn more or schedule an appointment. Every individual circumstance is different, so we would need to look at the entire picture to know whether this might be a good strategy for you.