Legacy is a term often used but rarely fully understood. According to Heather Glick-Atalla, an esteemed estate planning attorney and corporate attorney for nonprofit organizations, legacy is about the lasting impact one leaves behind. It’s more than just material wealth; it’s about creating something that endures, something that people will remember you by long after you’re gone. This profound concept guides Heather in her work with clients who seek to ensure their values and contributions extend beyond their lifetime.
Charitable Giving: Methods and Benefits
Charitable giving can be a vital component of legacy planning. Heather outlines several methods to achieve this, each tailored to different needs and levels of involvement:
Direct Contributions
- Writing Checks: The simplest form of giving, where donors write checks to their chosen charities, potentially setting up recurring donations or specific programs in their names.
Donor-Advised Funds (DAFs)
- DAF Structure: A donor-advised fund is akin to a charitable checking account managed by a community foundation. Donors can contribute varying amounts, either during their lifetime or posthumously, designating the fund as a beneficiary of their estate.
- Flexibility and Ease: Donors receive immediate tax benefits and can decide later which charities will receive the funds. This method eliminates the need for tax filings and reduces administrative burdens.
- Community Foundation Assistance: Community foundations, like the Jewish Community Foundation, offer advice and help donors find charities aligned with their interests.
Private Family Foundations
- Control and Flexibility: Unlike DAFs, family foundations allow donations to individuals, such as scholarships, and provide greater control over investment strategies.
- Administrative Responsibilities: Establishing a family foundation involves applying for tax-exempt status, filing annual tax returns, and adhering to strict regulatory requirements.
- Long-Term Commitment: Running a family foundation can be time-consuming, often requiring significant administrative support and financial management.
Estate Planning at Different Life Stages
Estate planning needs evolve over time. Heather emphasizes the importance of planning for the unexpected and revisiting plans regularly:
- Early Planning: Young families might focus on basic estate planning, ensuring guardianship for minor children and setting up initial charitable plans.
- Mid-Life Adjustments: As financial situations stabilize and grow, more sophisticated charitable giving strategies, such as DAFs or family foundations, might be explored.
- Later Life Considerations: Near retirement, individuals often refine their plans to maximize charitable giving while ensuring sufficient resources for their needs.
Misconceptions and Realities
One common misconception Heather encounters is the assumption that starting a family foundation is straightforward and easy. In reality, it requires significant dedication and administrative effort. DAFs often provide a more manageable alternative for those looking to engage in charitable giving without the extensive responsibilities of a foundation.
Key Takeaways
- Legacy is about lasting impact: It’s more than wealth; it’s about how you want to be remembered.
- Charitable giving methods: Include direct contributions, DAFs, and private family foundations, each with unique benefits and requirements.
- Estate planning evolves: Regular updates are essential to adapt to life changes and financial growth.
- Generational giving: Encouraging philanthropy in children can create a lasting legacy of charitable values.
- Realities of foundations: Starting a family foundation involves significant responsibility; DAFs offer a simpler alternative.
Heather Glick-Atalla’s expertise in estate planning and charitable giving helps clients create enduring legacies, blending professional guidance with personal dedication to client goals.
Notable Quotation:
“I plan, I do estate planning… my philosophy is what happens to your estate if, God forbid, you pass away tomorrow?”
Watch The Full Interview Now:
Connecting with Heather:
LinkedIn: https://www.linkedin.com/in/heatherglick
Website: https://glicklaw.com/
DISCLAIMER: The Probate Realtor® Matias Baker Masucci is a licensed real estate broker in California DRE # 02054763. Any legal information provided is for informational purposes only and NOT for the purpose of providing legal advice. Contact an attorney to obtain advice with respect to any particular legal issue or problem. We make no guarantees as to the accuracy of any information.
Leave a Reply