Money, mortality, and family relationships can be challenging topics to discuss, which might explain why it’s not unusual for people to avoid getting started setting up or updating an estate plan. And with so many competing demands on your time and attention, estate planning might feel like one task you can put off to a later date. But it’s important to remember that establishing will, trust, and beneficiary designations well before you expect to need them is a necessary act of kindness for your loved ones.
By planning ahead, you can spare surviving—and grieving—loved ones additional burdens from uncertainty on how best to carry out your wishes. Updating your estate plan also lets you arrange gifts from your estate to causes you care about.
A popular way of supporting charities in an estate plan is through a beneficiary designation. If you’re considering this option, here are some tips to keep in mind.
As you work with your attorney and other advisors, be sure to review the beneficiary designations on your insurance policies and retirement plans.
Remember to update your plan after any major life events.
Pay close attention to tax-deferred retirement plans, such as 401(k)s and IRAs. Married people typically name their spouse as the primary beneficiary of these accounts to provide income and comply with legal requirements.
Naming a charity like The New York Community Trust as a secondary beneficiary of these tax-deferred accounts can be a tax-efficient, streamlined way to make gifts to your favorite causes and establish a philanthropic legacy.
Finally, always check with your own financial advisor before making any final decisions.
Estate planning documents, including wills, trusts, and beneficiary designations help prevent conflicts among grieving loved ones and provide clear instructions for the distribution of assets following your wishes.
While it’s tempting to delay taking these steps, it’s helpful to remember that an estate plan is one more way to demonstrate how much you care about the people in your life—as well as your charitable passions.
Show you Care
Let The Trust help with your estate planning. We can discuss options with you and provide appropriate bequest and beneficiary designation language.
Contact us to learn more: (212) 686-0010 x363 or giving@thenytrust.org
This article is published for informational purposes only and with the understanding that it is not legal, accounting, or other professional advice.