Does planned giving feel too permanent, overwhelming, and, in some cases, a little bit scary?
In addition to celebrating Halloween, the month of October also marks National Estate Planning Awareness Month. The Catholic Foundation of Eastern Pennsylvania wants to take the scare out of planned giving and help its donors understand the importance of having an estate plan in place before the end of their life.
“People should never leave anything to chance,” says Pete Waldron, President of the Catholic Foundation. “Putting an estate plan in place now ensures all of your end-of-life wishes will be honored and respected later.”
In keeping with the season, here is a list of a few “Tricks or Treats” to consider about estate planning, planned giving and creating a lasting impact for your favorite Catholic causes.
Trick: “Do I Really Need an Estate Plan, or Even a Will?”
Treat: An estate plan is a collection of documents that outline your wishes on what happens to you, your assets and affairs after you die or if you become severely ill or incapacitated. It includes healthcare directives and proxies, legal power of attorney, and executorship. If you have minor children, it includes the names of the guardians you have selected to care for them.
By making the decisions now while you are of sound mind, you can relieve the pressure and the guess work of decision making for your family members or friends. You can outline very clearly how you want everything to be carried out.
Besides making sure your assets are given to the people you choose, planning ahead can minimize income, gift and estate taxes. Without an estate plan, and specifically a will, the laws in each state will determine what happens to your assets. If not specified, the courts will decide who gets custody of your children.
Trick: “I’m Worried I’ll Outlive My Retirement Income. A Planned Gift Doesn’t Seem Practical Right Now.”
Treat: It’s a common concern, and you’re not alone in feeling this way. The good news is that you can still make a planned gift while ensuring financial security for yourself and your family.
In addition to the most common planned giving options, a gift in a will or a beneficiary designation, there are other more detailed options that provide income to you and a gift to a designated nonprofit after your death.
It is important that you talk to an attorney and a financial advisor to make sure you have the most up-to-date advice and follow current tax laws. Setting up your plan the right way provides reassurance that your wishes will be carried out.
Trick: “I Would Like to Leave a Gift to my Favorite Catholic Cause, but I’m Worried This Will Cause Conflict in my Family.”
Treat: That’s a valid concern. It’s important to protect your loved ones and avoid misunderstandings. The good news is, by having a clearly written plan, you can eliminate or at least minimize, any conflicts. An estate plan or at the very least a will ensure your family understands your decisions and how you wish them to be carried out.
Communication from the onset is important. Discuss your planned giving decisions with your family early on. Explain why supporting your favorite Catholic cause is so important to you. Clear communication fosters understanding and will help to ensure your wishes are fulfilled.
Nearly 75% of Americans who expect to receive an inheritance believe it’s reasonable to leave a percentage to charity, according to research by The Stelter Company. Planned giving can be a way to set an example of faith-driven generosity.
Trick: “I’m On a Tight Budget Right Now. I Don’t Think I’ll Ever Have Enough to Make a Planned Gift.”
Treat: You’re not alone in feeling that way. But here’s the good news—planned giving doesn’t have to affect your current finances. Many donors choose options that allow them to leave a legacy later without impacting the cash they need now.
Usually, the largest charitable gift of a person’s life is their final one. And the size of the gift can be at any level.
Trick: “What if the Value of my Estate Changes? I’m Worried There Won’t Be Enough for my Family.”
Treat: One way to protect your family while supporting your favorite Catholic cause is to leave a percentage of your estate instead of a fixed amount. This way, you can adjust based on your estate’s value and ensure both your loved ones and your favorite Catholic cause are taken care of.
As you can see, planned giving doesn’t have to be scary. By addressing concerns head-on with your key legal and financial advisors, you can put together a solid estate plan. Together with the Catholic Foundation, donors can fulfill their end-of-life wishes that supports themselves, their loved ones and the Catholic causes they hold so dear.
Let’s Talk About Your Estate Plan
For more information on planned giving and how to create a forever gift for your favorite Catholic cause, contact the Catholic Foundation at [email protected].