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Charitable Gift and Estate Planning
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Getting Started: Your Will
The will is one of the most important documents you can own, yet surveys show only 4 out of 10 Americans have current wills.
Think of planning a will as planning to improve and stabilize the financial security of yourself and your family. By thinking in this way, you will be putting present goals first.
A current will provides you with an opportunity to distribute your estate according to your wishes. It offers:
- one last opportunity to express your values to your heirs;
- a chance to care for your heirs according to their special needs; and
- the occasion to make a gift to charitable organizations like Children's Hospital and Health System Foundation that have touched your life.
To avoid any possible misunderstandings among your heirs, a letter, composed by you and kept with your will, lets your family and heirs know your intentions and your reasons behind them.
What's Wrong With My Old Will?
Check this list of 10 possible life changes that may require updating your will.
- Births
- Marriage or divorce—yours or one of your children's
- The death or incapacity of a named beneficiary in your will
- Changes in your personal net worth
- Change of your needs or your beneficiaries' needs
- Change of residence—Do you now live in a different state? Check the laws of that state.
- Changes in the tax law
- Change of personal representative of your estate or guardian of dependents under your care
- New charitable interests
- Retirement
What Happens If You Don't Have a Will?
If you don't have a legal will, the state where you are domiciled (i.e., the state in which you live most of the time, vote, have your driver's license) has one for you. The state legislators who drafted the laws of "intestacy" (laws for the distribution of the assets of those who die without a will) made general rules that apply to every situation, no matter what the personal wishes of the deceased.
Planning for Your Will
Many people mistakenly believe that wills are only for the rich. Nothing is further from the truth. If you are married or single, if you have children and relatives, you need a will. If you have charitable causes you want to help perpetuate, you need a will. If you own a home or have a bank account, stocks or any other kind of property, you need a will.
Having your will prepared by an attorney and executed according to state guidelines is essential. Several steps are necessary for a will to be legal.
- It should be in writing.
- It should be signed by the one creating the will.
- It should be acknowledged to be the will of the person who signs it.
- It should be dated.
People who are not beneficiaries of the will must witness the signature of the person who creates the will. They, too, must sign it.
A will, of course, is revocable. It does not become irrevocable until you die. You may change it at any time. Review your will periodically to make sure it is current.
A Final Note
If you are considering a charitable gift, think of the advantages of designing it by will. During your lifetime, a bequest is private, changeable at any time and does not deprive you of the use of assets or income.
The official bequest language for Children’s Hospital and Health System Foundation is:"I, [name], of [city, state, ZIP], give devise and bequeath to Children's Hospital and Health System Foundation [written amount or percentage of the estate or description of the property] to be utilized for [name restricted purpose or for general use]."
Please ask our representative to explain choices available to you: a cash bequest, a gift of property, a share of the residue of your estate or a trust after the lifetime of a family member. Contact Kelly Sachse at 414-266-6121 888-543-7233, or via e-mail at ksachse@chw.org, for more information.
Copyright © The Stelter Company, All rights reserved.
The information in this Web site is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to income tax apply to federal taxes only. Federal estate tax, state income/estate taxes or state law may impact your results.
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