Reflections on Opportunities to Make a Difference
On February 1, 2024, we were pleased to host our first-ever Legacy Lunch and Learn event at Veterans Memorial Lodge. Our topic was: Protecting the future: the heartfelt power of estate planning, and featured a presentation from and discussion with Barbara Armstrong of Edward Jones (in the photo, at the podium).
Sometimes people are worried that leaving a charitable gift in their Will might mean their loved ones receive less. Barbara says, “The truth is, with planning and intention, a charitable gift can actually enhance the gifts to family, can lower the taxes in the estate and can make a lasting difference to the charity/ies.” She shared this story with us to illustrate her point:
David is predeceased by his wife and owns a family cottage in his name. He knows that their daughter would like to inherit the cottage but knows as well that the gains taxes are prohibitively expensive at $500,000. Other things being equal, his estate would have to sell the cottage to pay the tax. Instead, David takes out a $1M insurance policy on his own life and names a registered charity as the beneficiary. On his death, the insurance policy pays $1M to the charity, resulting in tax credit of $464,000, essentially countering the taxes owed on the cottage.
This is just one example of many ways charitable giving can be structured through your estate. Barbara shared with us that gift planning through your estate can provide financial support for a charity, in addition to the annual or regular giving during your lifetime. A gift in your Will is a gift that you might not be able to offer in your lifetime.
Barbara recommends exploring your options with your Financial Advisor (especially helpful if they are also licensed with life insurance and planning), in consultation with your estate lawyer and tax professional. She says, “It is very important for you to have reflected on what purpose you would like your gift to serve, what opportunities would be possible and/or what obstacles you would want to avoid. It is also important to have exploratory conversations with the Development leader in the organization/s for which you are considering making a gift.”
The discussion that followed Barbara’s presentation was lively and interesting, and many who attended were grateful for the opportunity to learn more. We are thankful to Barbara for sharing her expertise with us, and look forward to this becoming an annual event.
Do you have questions about legacy giving at Broadmead Care? Contact Mandy Parker for a confidential conversation, by email to Mandy.Parker@broadmeadcare.com, or call her at 250.658.3226, or visit our Legacy Giving page.
Do you have suggestions for future legacy lunch and learn topics? Let us know! Email communications@broadmeadcare.com.
