June 14, 2010
With the uncertainty of the economy and taxes, many clients are focusing more on how to preserve their estate and its management after they have passed.
Most of the reasons cited for preparing a will or trust are about reducing or eliminating taxes, eliminating probate and making the transition after the loss of a loved one simpler and easier. But planning your estate can also convey powerful messages about your values, your hopes and your dreams to and for those that survive you.
Many of us purchase life insurance so that our spouses and dependants can continue their lives and lifestyles without hardship if we die. And, when a spouse survives they can continue to uphold our values. But what happens when there is no one to transmit those values?
A properly prepared estate plan will represent your values. For example, assume that you want your children to continue to do meaningful work even if you leave them a substantial inheritance. Your estate plan can tie distributions from your estate to your child’s W-2 or other earned income. This demonstrates the importance you place on the value of meaningful work while rewarding the beneficiary for acting in accordance with that value.
Or, you could set up a charitable gift fund and allow your children to direct the funds to specific charities of your choice, demonstrating both the value you place on philanthropy and allowing your children the joy of giving.
Make your planning more about how you give than about what you give.
Michael E. Garner, Esq.