National Estate Planning Awareness Week is October 19-25. This follows Make-A-Will Month in August. A reminder to “make a will” is good advice, of course, but a thoughtful estate plan usually involves much more than a single document. And if supporting the Nebraska FFA Foundation is important to you, making sure all the pieces work together can be especially important.
Think about the different ways assets can pass at death. Some assets may be distributed under a will or according to the terms of a revocable trust. Other assets - including IRAs, retirement plan accounts, life insurance policies, and certain financial accounts - may pass according to beneficiary designations or “transfer on death” designations.
Creating the legacy you envision requires thinking not only about who and what you want to support, but also about how particular assets will get there. For example, suppose you would like part of your estate eventually to support the work of the Nebraska FFA Foundation. Depending on your circumstances and goals, you and your estate planning advisors might consider approaches such as:
-Naming the Nebraska FFA Foundation as beneficiary of your donor-advised fund. If you already have a donor-advised fund, you’ve taken an important step toward organizing your overall giving strategy. Your donor-advised fund provider may allow you to name the Nebraska FFA Foundation (as well as other nonprofits you care about) to receive all or a percentage of the remaining balance in your fund after your death.
-Leaving a specific dollar amount or percentage through your will or trust. Perhaps you want $10,000, $25,000, or another specified amount to support the Nebraska FFA Foundation. Your attorney can incorporate that appropriate language into your estate planning documents. Alternatively, instead of specifying a dollar amount, you might direct that a percentage of your estate pass to the Nebraska FFA Foundation. A percentage gift can adjust as the value of your estate changes over time.
-Naming the Nebraska FFA Foundation as beneficiary of an IRA or other retirement account. You can generally designate a charitable beneficiary to receive all or a percentage of your IRA or retirement account, while leaving other assets to family members or other beneficiaries. Traditional retirement accounts are particularly worth discussing with your advisors because distributions that may be taxable to individual beneficiaries can generally be received by a qualified charitable organization without the same income tax burden.
-Considering other beneficiary designations. Depending on the assets you own and your overall estate plan, there may be additional opportunities to name the Nebraska FFA Foundation as a beneficiary. Your estate planning and financial advisors can help you determine which assets may be most appropriate for charitable giving.
These approaches do not necessarily have to stand alone. The charitable components of your estate plan might incorporate more than one document, beneficiary designation, or asset to accomplish your goals.
For these reasons, National Estate Planning Awareness Week is about more than simply checking “make a will” off your to-do list. It’s an opportunity to look at your entire estate plan and ask whether your documents and beneficiary designations work together to reflect the people and organizations you want to support.
If the Nebraska FFA Foundation has been an important part of your charitable giving, we would be honored to talk with you about ways to make our work part of your legacy. We can work alongside your attorney, CPA, and financial advisor as you explore the options that may be right for you.
