Prevent Blindness - Personal Planning Ideas

Make Your Estate Gift Today

Rather than make a charitable gift by will or living trust, you may find it advantageous to create a lifetime income gift—a gift annuity or charitable remainder trust from which you will receive payments for life, with the assets later benefitting our programs.

A charitable remainder trust is a trust in which you irrevocably place cash, securities or other property but keep specified payments. When the trust ends, the property in the trust transfers to us for charitable purposes, much as if you had left it in your will. But because you chose to accelerate your bequest by means of a trust, you are entitled to a substantial income tax charitable deduction. Depending on how you arrange your trust, many other advantages are possible:

Capital gains tax avoidance.
Favorably taxed payments.
Diversion of income to a family member in a low tax bracket.
Potential estate tax savings.
Professional investment of your funds.
A hedge against future inflation.
Reduced estate settlement costs.
Meaningful support for our future.

Tips for Couples Marrying Later in Life

Older brides and grooms, particularly those with families from previous marriages, should review their retirement plans after saying “I do.” Certain qualified retirement plans are required to be paid as joint and survivor benefits unless the spouse has properly waived the right to receive survivor benefits. A waiver of this right prior to marriage (e.g., in a prenuptial agreement) may not be effective, since the parties are not husband or wife until after the wedding. For example, a spouse who wishes to have retirement assets pass to children from a previous marriage or who wants a portion of a qualified account to pass to charity may need a properly signed waiver.

Another consideration is the investment mix of the couple’s retirement assets. Newlyweds should review their total retirement plan holdings to determine whether their portfolio mix is appropriate for the ages of the spouses.

Too Young for Estate Planning?

At what age should people start thinking about creating a will or establishing other estate plans? In most states, the only legal requirement for making a will is that a person be age 18 or older and of sound mind. But as a practical matter, the need for a will and other estate plans starts to arise when a person assumes family responsibilities or accumulates personal wealth sufficient to warrant planning for its distribution.

Parents with minor children need wills to nominate the people they want to serve as guardians, should the children become orphans. Otherwise, a court might appoint a guardian who does not share the parents’ personal or religious values.
Parents should consider establishing trusts in their wills to provide financial management and protection for minor children who are orphaned. Life insurance is a frequent funding vehicle for trust arrangements.
Individuals providing financial support for older relatives need to plan for their continued support.
Everyone, regardless of age, needs to provide health care directives, such as a health care power of attorney, in the event they become disabled and cannot make decisions on medical treatment.
Many young people decide to get an early start on a life of giving back by including the causes they care about in their wills, living trusts or retirement plan beneficiary designations.

Where to Begin

Before consulting your attorney about drafting or updating your will, ask yourself the following questions:

What does my estate include (cash, real estate, insurance, investments, retirement accounts)?
Will my estate be subject to estate tax? Although federal estate taxes apply only to estates in excess of $12,060,000 in 2022, some states also impose estate or inheritance taxes at lower levels.
If my estate will be subject to tax, how can I avoid or reduce the tax?
Do I have any assets requiring special treatment, such as a closely held business?
Should I leave everything to my spouse, and if so, should it be left outright or in trust?
Do I need to name a guardian for minor children?
Besides my spouse and children, is anyone else dependent on me for care (aged parents, siblings, friends)?
Is there a way to continue the support to the charities I assisted during my lifetime?

Your attorney will need answers to these and other questions to draft the right documents for you and your situation.

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