Embracing Make a Will Month: Part Two – Creating a Legacy
National Make-a-Will Month has always felt like a distant reminder to get my affairs in order, but this year it hit a little closer to home. As my husband, Bret, and I found ourselves leaving our 40s behind and our children continued to mature, August felt more like an urgent call to action. We decided it was time to dust off our old will and give it a much-needed update.
Like many, we had put off the uncomfortable conversations about charitable giving and estate gifts, believing those decisions were for a much later stage in life. However, inspired by the generosity of others, we’ve realized the profound impact of such planning—leaving a legacy that benefits the causes we care about, even if those organizations and our community won’t reap the rewards for years to come.
In part one of this series, I shared our initial steps: scheduling a consultation with an attorney and gathering the necessary paperwork – a true “adulting” experience. Now, a mix of nerves and excitement churned within us as we entered the lawyer’s office, ready to embark on the next phase of our estate-planning journey.
The lawyer confirmed that our current will, while still valid, was outdated. It didn’t reflect changes in our family or our assets, and it didn’t include any provisions for charitable giving. Plus, we realized that some of the stipulations, like our kids having to wait until age 35 to access their inheritance, no longer made sense.
We dove into the nitty-gritty of estate planning, discussing the differences between wills and trusts. While a trust offers privacy and bypasses probate, it also requires more upfront effort. We decided to update our will first and revisit the idea of a trust down the road.
As someone who works for the Community Foundation, I was particularly interested in how we could incorporate charitable giving into our estate plan. Bret and I have always been passionate about supporting our community, and this felt like a tangible way to ensure that our love for Mason County extended beyond our lifetime.
Our lawyer explained that there are many ways to give back, even if you don’t have millions to spare. In fact, he pointed out that our retirement accounts could be a surprisingly effective tool for charitable giving.
Turns out, naming the Community Foundation as a beneficiary of our retirement accounts offers a couple of key advantages:
- Tax Benefits: The Foundation receives the full amount, as it’s a tax-exempt organization. If those funds were left to our children, they’d owe taxes, meaning Uncle Sam would get a cut.
- Simplicity: It’s a straightforward way to make a significant gift without complicating matters for our heirs.
The lawyer walked us through the process of updating our beneficiary designations. It’s simpler than you might think! Basically, you just need to contact your retirement account provider and indicate that a percentage (or dollar amount) of your account should go to the Community Foundation upon your passing.
As for the remaining funds in your retirement accounts, those can still go to your loved ones, who will receive them after taxes. It’s a win-win situation!
Learning this was a game-changer for us. Suddenly, realizing the Foundation’s tagline and creating a legacy felt achievable: “If we all leave a gift of just 5%, together, we can make a strong, positive impact on our community for many years to come.”
As our meeting drew to a close, we were provided with a checklist and resources to help us navigate the next steps. We left the office feeling informed and empowered, ready to tackle the remaining tasks.
We’re currently updating our beneficiary designations and double-checking our guardianship plans for our children. It’s a lot to consider, but knowing we’re taking steps to protect our family and support our community brings a sense of peace.
If you’ve been putting off creating or updating your will, I urge you to take that first step. It’s a gift you give yourself and your loved ones. And who knows? You might even discover a way to provide a lasting legacy for the community you cherish.
And remember, you don’t have to go it alone. The Community Foundation’s partnership with FreeWill offers a free and convenient way to create a basic will online. If you need more personalized guidance, you can always consult with an attorney.
Stay tuned for part three of our series, where I’ll share the final steps in Bret’s and my will-updating journey and the valuable lessons we learned along the way.
Until next time, happy planning!
Tara Autrey, Community Outreach Specialist for the Community Foundation
P.S. If you missed the first part of our series, be sure to check it out here. (You’ll learn an alternative way to celebrate “date night!”)