Giving Matters by Lawson Knight

Year-end Planning

Normally this time of year I beat the drums for year-end giving. As many of us plan for the end of the tax year, we consider appropriate charitable gifts to improve deductions and minimize our federal income tax. While still very important, this year I want to beseech you to do something more in-depth, and for many of us, more challenging - year-end planning.

In reviewing recent research on those likely to support charities, some surprising information was revealed about the condition of most of our estate plans, if we have them. Far too many do not have professionally-prepared financial or estate plans. Further, people who are most likely to be in a position to make a significant gift have significant fears about providing for health and wellness, sustaining and increasing wealth and providing for a family's security.

While many of these aforementioned fears can be allayed by proper planning, a large challenge is the reluctance to discuss significant end-of-life decisions with anyone but a spouse. One in five of people most capable of making a significant gift to charity do not have the basic protection of a Will, much less more sophisticated arrangements. Six out of ten people in a recent study have not had a wealth transfer discussion with their family.

Another surprising finding is how many folks do not seek the advice of an accountant, lawyer, stockbroker, banker, insurance agent or trust officer. Fully 22% do not use an advisor and an additional 21% do not have a primary financial advisor from whom to seek advice.

Remarkably, unlocking financial security and success through financial and estate planning has results. People feel they have more control over their financial future, reduce stress and worry and allow their money to do good.

So just what is the type of planning I am describing? In regard to your estate plan, it is a Will, a Durable Power of Attorney and a Healthcare Directive. Through this process you will make decisions about your estate, who should have which assets (to include your favorite charitable causes) and how should they own them, as well as articulating how you wish to be cared for at the end of your life. The elements of your financial plan address your protection and security, focusing on insurance, income needs and savings, and moves to investments to grow wealth and insure future income.

While this time of year is always an appropriate time to ask each and every one of us to consider our giving, this year give yourself a gift - work on your financial and estate plan with the help of a professional advisor. You will feel so good that you will probably make that gift. If you are also hunting for a New Year's Resolution, resolve to share your plan with someone besides a spouse.


Lawson Knight is the Executive Director of the Blue Mountain Community Foundation, located in the Baker Building, 8 South 2nd Ave., Suite 618, Walla Walla, WA 99362.
He may be contacted at 529-4371 or by e-mail.