Making Charitable Donations Part of Your Estate Plan

As you create an estate plan ( yes, you need one ), consider how your assets will be divided upon your death. Most people don’t consider charitable donations as a way to minimize estate/inheritance taxes. However, did you know that making charitable donations part of your estate plan could lessen the tax burden for your heirs? Read on to learn more.

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Why Designate Charitable Donations in Estate Plans?

For example, some people decide they don’t want to leave all their assets to their children or other beneficiaries. Likewise, others don’t have beneficiaries to leave their assets to but want to ensure their estate contributes to a lasting legacy.

For anyone passionate about a specific cause, making charitable donations part of your estate plan may be the right choice for you. Leaving funds or other assets to a designated charity could make the most impact. Tax-exempt charities are set up to maximize the effectiveness of gifts they receive, planned or otherwise.

Any funds given to a recognized public charity are not taxable. While this may decrease the overall amount any named beneficiaries receive, most people appreciate the sentiment during their grieving period. Making charitable donations part of your estate plan may be a good choice.

What Charities Count?

Any charity recognized by the IRS as a 501(c)(3) can receive tax-exempt donations as part of an estate plan. These include charitable organizations, churches and religious organizations, private foundations, and other non-profits.

In addition, depending on the size of your gift, you should contact the charity to inform them of your plans. They may need time to prepare for a large gift (over $10,000). They can also provide basic information to list in the estate plan to streamline the process. If you do name other beneficiaries in your estate plan, you should probably let them know your plans, too. This can minimize hurt feelings and contested wills upon your death.

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How to Get Started.

There are a number of ways to plan gift to charities, foundations, or others as part of your estate plan. Estate/inheritance tax rules seem to change every year. So, your estate attorney can work with your designated charities to determine which options make the most sense for everyone. By making your wishes clear in your estate plan, you leave little room for misinterpretation. You can minimize additional work for your heirs and maximize their tax benefits while supporting organizations important to you.

In conclusion, are you not sure how to name a charity in your estate plan? RELAX! Our estate planning experts can walk you through options. Each will fit your unique circumstances. We help with will preparation, trust creation and administration, probate administration, and more. Call us today at 724-216-5180 or complete the online form to schedule a free consultation.

What Makes a Great Estate Attorney?

When a person dies, what happens to their stuff? If they have an estate plan, they will have everything outlined. Preparation is key. Estate attorneys can help someone put together a will, set up trusts, and schedule charitable donations on the deceased behalf. A great estate attorney will also make arrangements for other common issues after a person passes. So, what makes a great estate attorney?

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Desk-Side Manners

Medical patients will often seek out doctors with great bedside manners. Clients should expect the same thing, courtesy, and explanations from their estate attorney. Desk-side manners if you will. An estate attorney that cares will take the time to fully understand your family’s needs and your personal wishes. They will help you sort out your options. In addition, they will also help you fully understand each option before making those decisions.

Efficient and Thorough Preparations

Nobody likes thinking about their demise. Occasionally time just simply isn’t on the client’s side. Meanwhile, a good estate attorney will do a thorough job preparing estate documentation to minimize anxiety. Experienced and caring estate attorneys will do the same thorough preparations, but also turn things around quickly. You should never have to chase down an estate attorney for the status of paperwork if time is of the essence. Once you have discussed everything you want prepared, they should give you a timeline and meet it without issue.

Does All the Things

Sometimes estate attorneys will specialize in a few specific areas like probate or will creation. Exceptional estate attorneys can be your one-stop shop for a variety of legal issues. You can trust them to execute on everything related to estate planning and provide better results over engaging multiple attorneys. If they’ve been doing it long enough, an estate attorney should have the experience setting up and administrating trusts, finding ways to avoid probate, or minimizing tax implications.

Great estate attorneys can help their clients navigate a very complex legal system. They provide their clients peace of mind during planning and also during execution.

Do you have a great estate attorney? If you need assistance planning, updating, or executing on an existing plan, relax! Call our office at 724-216-5180 or complete the online form to schedule a free consultation.

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What Makes a Good Guardian?

What makes a good guardian? Creating a will and estate plan means thinking about those you leave behind after you die. If you have young children, wards or even beloved pets, your will should also include naming a guardian. So, what do you look for in a guardian?

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Find the right guardian.
A Guardian’s Role

Firstly, after your death, a guardian will bear responsibility for the care of those named. Most commonly this refers to minor children under the age of 18. A guardian provides basic necessities, medical care, education and support until the child reaches 18 years old. They must act in the best interests of the child.

Common Guardian Nominees

Usually, the other parent or a stepparent may be named as guardian of young children. While tempting to name your parents (after all, they raised you), consider the likelihood of them outliving you. More commonly siblings, close friends, or other adult children make good nominees to serve as guardians. In the best scenarios, the adult already knows the child and their personality well.

Important Attributes

Most importantly, a prospective guardian should have the physical and mental abilities as well as the financial stability to care for a child. They should also be dependable and trustworthy. In addition, beyond that baseline, you’ll have to consider who would best fill your role in your absence. Who shares your core values and beliefs? Who would parent your child in a manner similar to how you would? Guardians should also have the patience to support a child through the traumatic experience of losing their parent.

Consent to Serve as Guardian

This should go without saying. However, we’ll just put this right here: you should always ASK someone before naming them guardian of your child. In the event of your untimely death, named guardians should be aware of their new responsibilities. Having a named person unable or unwilling to serve as your child’s guardian could be doubly devastating for them.

Backup Plans

To lessen the anxiety of finding THE guardian, parents should consider naming additional adults to serve as backup guardians. Things happen and even a well-informed, amenable first choice may have to bow out. Having multiple options can lessen the burden on someone who may no longer be in a position to serve as guardian.

Periodically Review

As with most aspects of an estate plan, it makes sense to revisit guardian selection on a regular basis. Divorces, fallings out, or other unfortunate events could make previously ideal guardians no longer the best choices. Of course, you should make those impacted by your changes aware of them. ​

Every parent of young children should include guardianship as part of their estate planning. Knowing what makes a good guardian is only part of the equation. We know that every client has unique situations, and we take the time to understand your needs and wishes. Then we’ll offer advice on your best options. Call John A. Cochran, Esquire, in Greensburg at 724-216-5180 or use our online form to schedule a free consultation.

What Makes a Good Executor?

We’ve been telling people for a while now that you need a will.

Read more here—> https://www.jacochranlaw.com/reminder-you-need-will

Don’t just take our word for it. Here’s even more: https://www.thebalance.com/why-you-need-a-will-1289264

Likewise, you can find many more reasons why you should have a will anywhere on the web.

For those trying to do the right thing, after beneficiaries, the next question becomes who will serve as executor? This is an important decision. But before you decide, we’ve created this post to help you think about what makes a good executor.

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Family

Most people automatically select a reasonably responsible family member to serve as executor of their will. Usual suspects include spouses, siblings, parents, children or close cousins. One word of caution: you should select at least one person younger than you. After all, not to be rude, but your executor might not outlive you if they are older.

Close Friends

Not everyone has family they can trust. This makes “families of choice” a more viable option to execute a will. Sewing up a clear will and executor clause becomes even more important if there are next of kin. The good news a will can cover that base for you.

Attorney or Other Trusted Professional

Sometimes for a variety of reasons, a person does not have trusted family or friend to name as their executor. Sometimes they just want to minimize any squabbles by putting an independent third party in charge of executing the will. The downside of this arrangement is that your estate will pay a fee for their services.

Limitations

If the person you name as the executor lives in another state, you may need to check state laws. Some states have special requirements about family members, bonds to protect heirs from mismanagement, or the appointment of in-state agents. Each state will also set executor fees for third party management, depending on the size of estate.

Replace Only if Necessary

The bottom line is you want to choose an executor who is mentally and financially stable to do the job. You have to be able to trust they will carry out your wishes as outlined in your will upon your death. If a situation changes that no longer makes your named executor the best option anymore, you can create a codicil. A codicil serves as an amendment to the original will which could name the new executor. You must have it validated just like the original will with two legal witnesses. Placing your trust in an executor to carry out your wishes after your death is no small matter. If you need help putting together a will or want advice on selecting an executor, relax!

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Finally, we know that every client has unique situations. However, we take the time to understand your needs and wishes. Then we’ll offer advice on your best options. Call John A. Cochran, Esquire, in Greensburg at 724-216-0704 or use our online form to schedule a free consultation.