Planning Your Legacy: 4 Key Tips for Estate Planning and Legacy Giving

August is National Make-A-Will Month, and if you’re not already, it’s a great time to start thinking about estate planning. There is a common misconception that estate planning is only for the wealthy, but actually, it is a highly accessible tool available to anyone who wants to ensure their wishes are carried out, protect their loved ones, and minimize potential legal complications—regardless of their financial status.

Another common misconception about estate planning is related to charitable bequests, donations made through a will or estate plan to a nonprofit organization or charitable cause. Many believe their estate is small and won’t offer their successors much value or gain. But, good news: You don’t need wealth to make a difference with your legacy. Whatever the size of your estate, you can still contribute to the causes you care about.

Last year, Meals on Wheels San Diego County received an unexpected $1.5 million gift from a donor—a public school teacher in Coronado—who, up until that point, had given just $50 annually to our organization. All of this donor’s contributions were meaningful, but her final gift to our organization was an incredible surprise that had a profound impact on our programs and the number of people we could serve, and supported our mission to deliver more than a meal to our seniors for years to come.

Here are four basic tips to consider when planning your estate, with a focus on the rewarding practice of legacy giving.

Start with a Clear Vision of Your Legacy
Before diving into the legal aspects of estate planning, take a moment to consider the legacy you want to leave. Do you want to support a particular charity, name capital projects, or contribute to a cause close to your heart? Identifying these goals will guide your estate planning decisions and ensure your values are reflected in your legacy.

As I prepare to join the more than nine million Californians over the age of 60, I have begun to reflect on how I wish to be remembered, not only by my loved ones but by all who know me. I want to be remembered as someone who worked to make this world a better place, and who was committed to helping those in need. I want to leave a legacy that reflects these values and continues to support the causes I believe in after I am gone.

If you can relate to wanting to leave a legacy that you and your family are proud of, legacy giving is a great way to make a large, meaningful gift—one you might not be able to make otherwise. If a certain cause or nonprofit organization is especially close to your heart, this is an incredible way to make an impact for decades to come.

Planned or legacy giving is crucial for nonprofit organizations because it can ensure a consistent, long-term funding source to continue vital programs and services. It’s a revenue stream that can help calm financial waves in the future. The missions and needs of nonprofits evolve, and they can forecast their budgets to an extent. Bequests to nonprofit organizations have the added benefit of allowing them to be more agile and strategic with their budgets over time, even when the needs haven’t been exactly determined, and to adapt to their clients’ demands as they evolve.

For example, in addition to low-cost home-delivered meals for seniors and disabled Veterans, Meals on Wheels San Diego County goes the extra mile to deliver more than a meal, and meets other important client needs through our Care Navigation program. Since its start in 2017, the program has grown to include special projects and address service gaps. For example, to combat heat exhaustion, we have organized annual fan drives. Additionally, recognizing that many seniors have limited transportation and mobility resources, we partnered with the County of San Diego and other organizations to ensure seniors can access COVID-19 and flu vaccines at home. The Care Navigation Team also connects clients with essential resources, like transportation and caregiving services. Programs like these are vital to helping vulnerable community members, but we can’t always anticipate years in advance with perfect accuracy how costs will fluctuate.

Look at Different Ways to Give
Legacy giving can be achieved in various ways, each with its benefits. Here are a few options:

• Bequests in a Will: A bequest is a simple yet powerful way to donate to a cause. You can specify a fixed amount, a percentage of your estate, or particular assets, like stocks or real estate, to be given to a charity.

• Charitable Trusts: Establishing a charitable trust can provide ongoing support to your chosen causes while also offering tax benefits. There are different types of trusts, such as charitable remainder trusts and charitable lead trusts, each with unique advantages.

• Beneficiary Designations: You can designate charities as beneficiaries of your life insurance policies, retirement accounts, or investment accounts. This method is often straightforward, avoids probate, and in some cases does not require the pre-existence of a will.

If you are planning a bequest to a nonprofit organization, it is helpful if the organization is made aware they are a beneficiary to help them with future planning.

DIY and Professional Estate Planning Options
Depending on the size and complexity of your estate, you may opt for free or paid options for help crafting your estate plan. For those with more straightforward estates, there are now several easy and inexpensive online tools for creating a legal will.

While do-it-yourself wills and online resources are great accessible options, you might prefer to consult legal and financial professionals to navigate the complexities of estate planning. An estate planning attorney can help ensure your documents are legally sound and align with your intentions. Additionally, a financial advisor can provide insights into the most tax-efficient ways to structure your charitable contributions.

Take the First Step in Your Estate Plan
Beginning your estate planning can feel daunting, but you don't have to go it alone. If you’d like to learn more, reach out to Meals on Wheels San Diego County directly, or join our free Estate Planning Webinar on August 29, 2024 at 12 p.m. Award-winning estate planning lawyer and U.S. Navy Veteran Nicole D'Ambrogi will present on topics spanning wills, trusts, healthcare documents, power of attorney, and much more. To RSVP, send a message to efoeckler@meals-on-wheels.org to reserve your spot.

By planning your estate thoughtfully, you can create a lasting impact that extends beyond your lifetime, supporting the people and causes that matter most to you.