Givin' While You're Livin'

There is no doubt that a few seniors go to their reward while leaving a lot behind. This happens for various reasons. Some die unexpectedly without making provisions for the distribution of their wealth. Sad, but true. Others never gave it much of a thought and time ran out. A few couldn’t decide what to do with it and left it up to the government. Still others, estranged from family and friends, aimed their estate in other directions.

Another senior moment occurs when the question arises: What do I do with my modest estate (or my incredible fortune)? Ah yes, we wrote our will when we were let’s say, 40, and divided our estate equally among our children. But alas, one of them fell by the wayside, squandering his life. No doubt he would squander his inheritance as well so the will was rewritten. But surprise of surprises, he straightened out and became a model son. But it was too late. We were long gone, and the inheritance had already been dispersed. It happens.

I suppose you remember that ditty of yesteryear, Do your givin’ while you’re livin’ so you’ll be knowin’  where it’s goin’ . . . Not bad philosophy, really. Pretty good theology or philanthropy too. True, some seniors do rewrite their wills. Some wisely consider Revokable Living Trusts which includes their will and other sundry provisions if need be. To write an Irrevokable Trust could one day backfire so we ought to tread carefully there.

Rather than give advice on writing wills, setting up trusts (others can do that better), let it suffice to simply remind you to do this if you haven’t already done it. There is something satisfying in knowing where your estate is going, whether modest or lavish, and to remember what joy there is in giving whether a cup of cold water or the endowment of an orphanage. That’s the beauty of giving: it’s the thought more than the amount.

If you haven’t given too much thought about the ultimate destination of your estate, there are many who will be more than willing to give you advice. I received a brochure in the mail from an agency involved in a legitimate, benevolent endeavor. I was asked to contribute to one of a suggested series of modest amounts with one left blank for me to exceed or lag the suggested amount.

The brochure went beyond the immediate request for a donation or pledge. It was a primer on Charitable Giving. This included several different ways to designate a gift while living. Here are some of the possible options: Bequest, Outright Gift of Cash, Securities or Personal Property, Gift of Life Insurance, Bequest of Retirement Assets or IRA Distributions, Gift of Real Estate, Charitable Remainder Unitrust or Annuity Trust, Gift Annuity or a Lead Trust.

Follow? For instance, what’s a Charitable Remainder Unitrust? First off, it suggests that we could create a hedge against inflation over the long term and augment our retirement income. How? Create a trust that pays a fixed percentage of the trust’s assets as revalued annually. The benefits hopefully would provide you a variable income for life with inflationary protection plus an immediate income tax charitable deduction. The charity keeps the money upon your demise.

Still interested? I suppose these kinds of charitable trusts are most valuable to those with ample assets who are interested in reducing their taxable estate as well as contributing to a worthwhile cause plus receiving a steady income for life with inflationary costs built in. Complicated? Can be without trustworthy advice. The moral: Do your givin’ while you’re livin’ wisely.