You are a superhero. Seriously, you have the ability to change the world or, at the very least, your little corner of it. You can affect this level of change just by asking yourself one simple question: what causes would I like to benefit in my will?
Bequests to Charities in Your Will
Yes, that’s right. You can include the nonprofits you care about most in your will, leaving a legacy after you have passed on. And, it doesn’t cost anything extra! Just the assets you’re choosing to gift. You can include charities like your church, alma mater, a local cause, or an international organization in your estate plan. And, if you ask the charity you care about most, I’ll bet they’ll tell you that the result of your charitable bequest, no matter how big or small, can make a huge impact.
When folks come to me for estate planning help, a major reason they do so—perhaps even the single reason they do so—is to benefit their children. Parents often think, “I love Charity X, but of course, I love my kids even more, and I’ve got to take care of my family.” Of course, you do! And, of course, you should! But, ask yourself another question: How much is enough for my kids? If you have lots of assets, and/or your children are adults, and successful on their own, could you provide adequate support for your children and still also include a bequest to one of more charities?
Let’s Talk
Invite the whole family to the kitchen table sometime (even if your kitchen table is a virtual one, via email) and talk about the distributions you want to make at death. Ask if including gifts to charity from your estate plan would be appropriate and acceptable to the kids. Perhaps it’s a charity the whole family supports. Perhaps this will be the beginning of a multigenerational cycle of giving.
Why not talk about it? This can be an especially productive conversation if you can explain that taxes are going to eat up a lot of one or more of the assets anyway, and this can be avoided by giving said asset(s) to charity (since charities are tax-exempt).
Sometimes when parents give a major asset(s) to charity, and their kids’ inheritance takes a real hit, they’ll buy a new life insurance policy to make up the shortfall to the kids. Or, they may even buy a new life insurance policy and name the charity directly as a beneficiary. There’s also a very helpful kind of trust called an ILIT, that significantly increases the impact of life insurance. Without getting too complicated, let me give you the basics.
An ILIT is an irrevocable, non-amendable trust which is both the owner and beneficiary of one or more life insurance policies. Upon the death of the insured, the trustee invests the insurance proceeds and administers the trust for one or more beneficiaries.
When it comes to estate planning, you’re thinking about so many different variables and scenarios, so what if you forget to factor in charity? Lucky for you, that’s why I’m here—to help you maximize charitable giving. That means determining how your generosity can not only help an organization make a difference but how you can maximize the financial and estate-related benefits from giving.
A 2013 study* showed how lawyers, like me, can help charitable giving factor in estate planning. The scientifically-conducted research from the UK-based Behavioural Insights Team showed that when lawyers asked clients specific questions regarding charitable giving, the results were significant. Here are the results:
Control Group/Baseline
Lawyers who provided no reminder or inquiry to their clients about possibly benefiting a charity in their estate plan (bequests) resulted in 4.9 percent of those clients including a charity in their plans.
Test Group One
Lawyers who asked their clients, “Would you like to leave any money to a charity in your will?” resulted in 10.8 percent of their clients including a charity.
Test Group Two
Lawyers who said, “Many of our clients like to leave money to a charity in their will. Are there causes you are passionate about?” resulted in 15.4 percent of their clients including a charity. What a dramatic increase!
Here are the approximate dollar values associated with each group:
Control Group/Baseline
Average bequest $5,000
Test Group One
Average bequest $4,800
Test Group Two
Average bequest $10,200
Again, test group two gives a powerful example of the difference charity-minded estate planners can make.
In the study, there were a 1,000 people in each of the groups. That means that the “Test Group Two” raised over $1 million more than the control group.
What this means for you is that your lawyer plays an important role in reminding, guiding, and assisting you in your charitable giving so that you can use your superpower (giving through your will) to the fullest extent.
In 2017, $35.70 billionwas contributed to US charities through bequests. Imagine if everyone worked with a lawyer with a strong focus on charitable giving! The impact could be incredibly transformative for the impact nonprofits can make in our communities.
Let’s Get Started
Harness your superpowers and get started with your legacy today. The best place to start is by filling out my Estate Plan Questionnaire. It’s easy, free, and there’s no obligation. It’s simply a document that gets you thinking and planning. Already have an estate plan, but want to update it to include the causes that are near and dear to your heart? Don’t hesitate to contact me.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2019/02/Screen-Shot-2019-03-01-at-9.46.11-AM.png6701032Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2019-02-27 16:06:472020-05-18 11:28:48YOU Are a Super Hero: Charitable Giving Through Estate Planning
For most of us, the right to vote has been a part of our adult lives. It seems weird to think about not having the ability to cast a ballot. But, imagine if you lost your right to vote and had to take even extra steps to get it back? This is the reality for more than 50,000 Iowans, according to a 2016 report from The Sentencing Project. Indeed, Iowa is one of two states (the other is Kentucky) in the country that imposes permanent disenfranchisement for people, even after they’ve served their sentence and completed all probation requirements. (You may have seen the recent news when Florida passed an amendment giving Floridians who were previously denied voting rights the ability to register to vote.) I believe it’s incredibly important for all people to exercise their right to vote and thus want to draw attention to an upcoming opportunity at The University of Iowa for those who have had their voting rights revoked due to a felony conviction. (While I’m not personally involved, I know people who are!)
Iowans who have lost their voting rights can restore them only through submitting a “Right to Vote and Hold Public Office” application to the Office of the Governor. The Governor then has the discretion to restore voting rights. (Governor Reynolds has restored the voting rights for 88 people since taking office in 2017.) While certainly a hurdle, the good news is that the state has recently streamlined the application to make it easier to complete. Additionally, Governor Reynolds has made public statements calling for a constitutional amendment to do away with the state’s lifetime ban on voting for felons, but that would take at least a couple legislative sessions for actual adoption per the state’s amendment process.
Voting Rights Restoration Clinic Info
In the meantime, the application is still essential for people looking to restore their voting and ability to hold public office rights. The University of Iowa Legal Clinic is hosting an opportunity for application assistance and advice for anyone interested. See the image below for more information and contact the Clinic at 319-335-9023 to reserve a spot. (Note: if you’re not able to participate on March 2, 2019, there are other opportunities for the Clinic to offer assistance, so don’t hesitate to call.)
After Prince’s unfortunate death in 2016 the news featured a multitude of articles commemorating his life and artistic influence. After those headlines faded, a new piece of news emerged: the artist died without a will. His estate, estimated to be between $150-$300 million, went to probate in the state of Minnesota and the state court appointed a special administrator to parcel out what Prince actually owned, the value of the property, and whom will actually receive the assets.
It’s a bad idea for anyone to die without an estate plan in place, as it leaves a great deal up to the law of intestate succession. Most people would prefer to choose their beneficiaries and a trusted executor to carry out their wishes. Under intestacy laws, you cannot choose these important people. You also cannot use your estate plan to achieve goals to reduce or eliminate income, estate, or inheritance taxes. Basically, without a will, you have no control over who gets what of your hard-earned assets at death.
Unfortunately, far too many people (six out of 10 Americans) don’t have estate planning documents like a will or living trust. Plus, since celebrities often have complex and highly valuable assets, dying intestate is often an extremely complicated, litigious affair. (For the sake of your friends, family, and lasting legacy avoiding litigation is a good goal to have with an estate plan.) For instance, a big question in the Prince case is who will be the beneficiary of perhaps one of the most persistently valuable assets—the right of publicity, which includes elements like Prince’s name and likeness.
While the average Iowan won’t have to consider publicity rights a part of their estate, there are at least six key documents celebs and the non-famous alike should have that cover important elements like finances, healthcare, and personal disposition of property.
Learn from Prince and these other five celebrities (among many more) who passed away without the proper estate planning in place:
The British artist died in 2011 when she was just 27. Without a will, her estate worth millions went to her parents. Say, even if Winehouse did want her brother to inherit part of the estate, he couldn’t because of (U.K.) laws covering who inherits what.
Shakur was tragically shot and killed in 1996 at the young age of 25; after his death, “his mother had to file court papers establishing herself as the administrator of his estate and the sole living heir.” Shakur also left a complex web of financial dealings, spendings, and debts to figure out. Shakur’s estate was made more complicated over the years through several albums of his music (intellectual property) released posthumously. Additionally, Tupac’s biological father lost a lawsuit claiming he was entitled to half of the estate.
It took more than six years of “bitter negotiations” for Picasso’s estate to be settled (for a pricey $30 million) after he died in 1973. Picasso passed at the ripe old age of 91 but did so without a will, so his assets were divided amongst seven familiar heirs. Picasso left a massive amount of valuable assets including 45,000 works of art, five homes, $4.5 million cash, $1.3 in gold, stocks, and bonds. “In 1980 the Picasso estate was appraised at $250 million, but experts have said the true value was actually in the billions.”
Bono passed away in 1998 following a fatal skiing accident with no will to his name. Issues flared when Cher (of their former pop duo Sonny & Cher) alleged he owned her past due alimony and a man named Sean Machu said he was Bono’s illegitimate child. His fourth spouse became the estate’s administrator.
The famed singer’s estate at the time of her death stands as a paradox to her modern posthumous fame. When Holiday died in 1959 she had “$0.70 in the bank and $750 strapped to her leg.” Since she died intestate under New York state law all of her royalties went to her estranged husband Louis McKay. Her total estate only continued to grow after her death including four Grammy awards, a movie about her life starring Diana Ross, and induction into the Grammy Hall of Fame.
You, yes you, can be a star too, but you need to have an estate plan in place to protect your legacy. The best way to get started is with my free (no obligation) estate plan questionnaire. Or, contact me to discuss your individual situation. Shoot me an email at gordon@gordonfischerlawfirm.com or give me a call at 515-371-6077.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2017/09/walk-kigF-U46030968946151JuD-1224x916@CorriereFiorentino-Web-Firenze-593x443.jpg443593Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2019-02-21 14:13:182020-05-18 11:28:485 Celebrities Who Died Without a Will
YOU Are a Super Hero: Charitable Giving Through Estate Planning
Charitable Giving, Estates & Estate PlanningYou are a superhero. Seriously, you have the ability to change the world or, at the very least, your little corner of it. You can affect this level of change just by asking yourself one simple question: what causes would I like to benefit in my will?
Bequests to Charities in Your Will
Yes, that’s right. You can include the nonprofits you care about most in your will, leaving a legacy after you have passed on. And, it doesn’t cost anything extra! Just the assets you’re choosing to gift. You can include charities like your church, alma mater, a local cause, or an international organization in your estate plan. And, if you ask the charity you care about most, I’ll bet they’ll tell you that the result of your charitable bequest, no matter how big or small, can make a huge impact.
What About My Kids?
When folks come to me for estate planning help, a major reason they do so—perhaps even the single reason they do so—is to benefit their children. Parents often think, “I love Charity X, but of course, I love my kids even more, and I’ve got to take care of my family.” Of course, you do! And, of course, you should! But, ask yourself another question: How much is enough for my kids? If you have lots of assets, and/or your children are adults, and successful on their own, could you provide adequate support for your children and still also include a bequest to one of more charities?
Let’s Talk
Invite the whole family to the kitchen table sometime (even if your kitchen table is a virtual one, via email) and talk about the distributions you want to make at death. Ask if including gifts to charity from your estate plan would be appropriate and acceptable to the kids. Perhaps it’s a charity the whole family supports. Perhaps this will be the beginning of a multigenerational cycle of giving.
Why not talk about it? This can be an especially productive conversation if you can explain that taxes are going to eat up a lot of one or more of the assets anyway, and this can be avoided by giving said asset(s) to charity (since charities are tax-exempt).
Life Insurance
Sometimes when parents give a major asset(s) to charity, and their kids’ inheritance takes a real hit, they’ll buy a new life insurance policy to make up the shortfall to the kids. Or, they may even buy a new life insurance policy and name the charity directly as a beneficiary. There’s also a very helpful kind of trust called an ILIT, that significantly increases the impact of life insurance. Without getting too complicated, let me give you the basics.
An ILIT is an irrevocable, non-amendable trust which is both the owner and beneficiary of one or more life insurance policies. Upon the death of the insured, the trustee invests the insurance proceeds and administers the trust for one or more beneficiaries.
What is the Role of an Estate Planner?
When it comes to estate planning, you’re thinking about so many different variables and scenarios, so what if you forget to factor in charity? Lucky for you, that’s why I’m here—to help you maximize charitable giving. That means determining how your generosity can not only help an organization make a difference but how you can maximize the financial and estate-related benefits from giving.
Studies Showed
A 2013 study* showed how lawyers, like me, can help charitable giving factor in estate planning. The scientifically-conducted research from the UK-based Behavioural Insights Team showed that when lawyers asked clients specific questions regarding charitable giving, the results were significant. Here are the results:
Control Group/Baseline
Lawyers who provided no reminder or inquiry to their clients about possibly benefiting a charity in their estate plan (bequests) resulted in 4.9 percent of those clients including a charity in their plans.
Test Group One
Lawyers who asked their clients, “Would you like to leave any money to a charity in your will?” resulted in 10.8 percent of their clients including a charity.
Test Group Two
Lawyers who said, “Many of our clients like to leave money to a charity in their will. Are there causes you are passionate about?” resulted in 15.4 percent of their clients including a charity. What a dramatic increase!
Here are the approximate dollar values associated with each group:
Control Group/Baseline
Average bequest $5,000
Test Group One
Average bequest $4,800
Test Group Two
Average bequest $10,200
Again, test group two gives a powerful example of the difference charity-minded estate planners can make.
In the study, there were a 1,000 people in each of the groups. That means that the “Test Group Two” raised over $1 million more than the control group.
What this means for you is that your lawyer plays an important role in reminding, guiding, and assisting you in your charitable giving so that you can use your superpower (giving through your will) to the fullest extent.
In 2017, $35.70 billion was contributed to US charities through bequests. Imagine if everyone worked with a lawyer with a strong focus on charitable giving! The impact could be incredibly transformative for the impact nonprofits can make in our communities.
Let’s Get Started
Harness your superpowers and get started with your legacy today. The best place to start is by filling out my Estate Plan Questionnaire. It’s easy, free, and there’s no obligation. It’s simply a document that gets you thinking and planning. Already have an estate plan, but want to update it to include the causes that are near and dear to your heart? Don’t hesitate to contact me.
Your Voice Matters: Upcoming Voter Rights Restoration Clinic
Events, From Gordon's Desk...For most of us, the right to vote has been a part of our adult lives. It seems weird to think about not having the ability to cast a ballot. But, imagine if you lost your right to vote and had to take even extra steps to get it back? This is the reality for more than 50,000 Iowans, according to a 2016 report from The Sentencing Project. Indeed, Iowa is one of two states (the other is Kentucky) in the country that imposes permanent disenfranchisement for people, even after they’ve served their sentence and completed all probation requirements. (You may have seen the recent news when Florida passed an amendment giving Floridians who were previously denied voting rights the ability to register to vote.) I believe it’s incredibly important for all people to exercise their right to vote and thus want to draw attention to an upcoming opportunity at The University of Iowa for those who have had their voting rights revoked due to a felony conviction. (While I’m not personally involved, I know people who are!)
Iowans who have lost their voting rights can restore them only through submitting a “Right to Vote and Hold Public Office” application to the Office of the Governor. The Governor then has the discretion to restore voting rights. (Governor Reynolds has restored the voting rights for 88 people since taking office in 2017.) While certainly a hurdle, the good news is that the state has recently streamlined the application to make it easier to complete. Additionally, Governor Reynolds has made public statements calling for a constitutional amendment to do away with the state’s lifetime ban on voting for felons, but that would take at least a couple legislative sessions for actual adoption per the state’s amendment process.
Voting Rights Restoration Clinic Info
In the meantime, the application is still essential for people looking to restore their voting and ability to hold public office rights. The University of Iowa Legal Clinic is hosting an opportunity for application assistance and advice for anyone interested. See the image below for more information and contact the Clinic at 319-335-9023 to reserve a spot. (Note: if you’re not able to participate on March 2, 2019, there are other opportunities for the Clinic to offer assistance, so don’t hesitate to call.)
5 Celebrities Who Died Without a Will
Estates & Estate Planning, WillsAfter Prince’s unfortunate death in 2016 the news featured a multitude of articles commemorating his life and artistic influence. After those headlines faded, a new piece of news emerged: the artist died without a will. His estate, estimated to be between $150-$300 million, went to probate in the state of Minnesota and the state court appointed a special administrator to parcel out what Prince actually owned, the value of the property, and whom will actually receive the assets.
It’s a bad idea for anyone to die without an estate plan in place, as it leaves a great deal up to the law of intestate succession. Most people would prefer to choose their beneficiaries and a trusted executor to carry out their wishes. Under intestacy laws, you cannot choose these important people. You also cannot use your estate plan to achieve goals to reduce or eliminate income, estate, or inheritance taxes. Basically, without a will, you have no control over who gets what of your hard-earned assets at death.
Unfortunately, far too many people (six out of 10 Americans) don’t have estate planning documents like a will or living trust. Plus, since celebrities often have complex and highly valuable assets, dying intestate is often an extremely complicated, litigious affair. (For the sake of your friends, family, and lasting legacy avoiding litigation is a good goal to have with an estate plan.) For instance, a big question in the Prince case is who will be the beneficiary of perhaps one of the most persistently valuable assets—the right of publicity, which includes elements like Prince’s name and likeness.
While the average Iowan won’t have to consider publicity rights a part of their estate, there are at least six key documents celebs and the non-famous alike should have that cover important elements like finances, healthcare, and personal disposition of property.
Learn from Prince and these other five celebrities (among many more) who passed away without the proper estate planning in place:
Howard Hughes, entrepreneur/producer/aviator
Hughes died on a flight in 1976 with no surviving spouse, child, parent, or sibling. Without a will, his $500 million-valued estate was eventually decided by a small Texas county probate court jury five years after his passing. The probate had brought about a “circus-like” atmosphere as more than 600 people showed up in person claiming to be “wives, sons, daughters, first, second, third, fourth and fifth cousins” of the late Hughes (and that didn’t count all the people who petitioned via letter). A couple of wills were also produced but were eventually thrown out as fakes.
Amy Winehouse, singer/songwriter
The British artist died in 2011 when she was just 27. Without a will, her estate worth millions went to her parents. Say, even if Winehouse did want her brother to inherit part of the estate, he couldn’t because of (U.K.) laws covering who inherits what.
Tupac Shakur, rapper/actor
Shakur was tragically shot and killed in 1996 at the young age of 25; after his death, “his mother had to file court papers establishing herself as the administrator of his estate and the sole living heir.” Shakur also left a complex web of financial dealings, spendings, and debts to figure out. Shakur’s estate was made more complicated over the years through several albums of his music (intellectual property) released posthumously. Additionally, Tupac’s biological father lost a lawsuit claiming he was entitled to half of the estate.
Pablo Picasso, artist
It took more than six years of “bitter negotiations” for Picasso’s estate to be settled (for a pricey $30 million) after he died in 1973. Picasso passed at the ripe old age of 91 but did so without a will, so his assets were divided amongst seven familiar heirs. Picasso left a massive amount of valuable assets including 45,000 works of art, five homes, $4.5 million cash, $1.3 in gold, stocks, and bonds. “In 1980 the Picasso estate was appraised at $250 million, but experts have said the true value was actually in the billions.”
Sonny Bono, singer/U.S. Representative
Bono passed away in 1998 following a fatal skiing accident with no will to his name. Issues flared when Cher (of their former pop duo Sonny & Cher) alleged he owned her past due alimony and a man named Sean Machu said he was Bono’s illegitimate child. His fourth spouse became the estate’s administrator.
Billie Holiday, jazz musician/singer
The famed singer’s estate at the time of her death stands as a paradox to her modern posthumous fame. When Holiday died in 1959 she had “$0.70 in the bank and $750 strapped to her leg.” Since she died intestate under New York state law all of her royalties went to her estranged husband Louis McKay. Her total estate only continued to grow after her death including four Grammy awards, a movie about her life starring Diana Ross, and induction into the Grammy Hall of Fame.
You, yes you, can be a star too, but you need to have an estate plan in place to protect your legacy. The best way to get started is with my free (no obligation) estate plan questionnaire. Or, contact me to discuss your individual situation. Shoot me an email at gordon@gordonfischerlawfirm.com or give me a call at 515-371-6077.