Make this the year to get your financial and estate plans in order. If you already dread assembling your receipts and other documents for 2022 tax filings, this may be a good time to take proactive steps to avoid being in this same spot next year.
Gathering up tax receipts for charitable donations is often a reminder to get organized with the rest of your financial life, too. At the very least, the subject of charitable giving can be a valuable reminder of the importance of having an estate plan.
Consider some of the critical elements of an estate plan:
- The difference between a will and a revocable (living) trust and how charitable wishes fit in to these documents
- Why it’s critical to be intentional about how each and every asset is titled so that the assets actually pass as intended (which requires making a comprehensive list of assets in the first place)
- The dangers of hurriedly filling out life insurance and retirement plan beneficiary designations and why these documents are absolutely critical components of a financial, estate, and charitable plan
- Reasons for having both a “living will" (or medical power of attorney) and a durable power of attorney, both of which (or the lack thereof) have a major impact in the event of incapacity
- A reminder to make sure someone in the family knows where to find a list of logins and passwords
Charitable planning is only one of many considerations during tax season, but it can be an excellent starting place for understanding the importance of a comprehensive estate and financial plan. For questions about the charitable components of your plans, contact Planned Giving Director Jamie Goble at (254) 754-3404 or email@example.com.