LEAVING A LEGACY OF GIVING MAKING CHARITY A PART OF YOUR ESTATE PLAN
Your estate plan is far more than just a set of documents. It’s a declaration of what you find most important and a roadmap of the legacy you’d like to leave. Not only does a proper estate plan ensure that your loved ones will be taken care of when you’re gone, but it also allows you to make an impact on the wider world through charitable giving. Many avenues exist for making planned gifts to nonprofits, but here are some of the basics on how to make giving a part of your plan. NAME A CHARITY IN YOUR WILL The most basic way to give to a charity is by naming it in your will. Simply name the charitable organization you wish to support among your beneficiaries, and specify the assets you wish to give. If estate or income taxes are a concern, ensure your chosen organization is
a 501(c)(3) nonprofit. These are the charities the IRS deems tax-exempt. MATCH THE ASSETS TO THE CHARITY Almost all charities will accept cash bequests, though it is always a good idea to notify an organization about what you are planning to give. Smaller philanthropies may not accept complex assets, such as stocks or real estate. On the other hand, some charities may specialize in specific assets. For example, if your home is considered a historic site within your town, you may want to gift it to a preservation society so that it stays properly maintained. DECIDE HOW TO GIVE There are different ways to structure a charitable bequest, giving you the flexibility to make sure your estate planning goals are met. If you have a set
sum of money or a particular asset you wish to leave to a charity, you can make a specific bequest in your will. However, if you want to ensure your loved one’s needs are met before giving a portion of your estate to charity, you can make what’s known as a residuary gift. With a residuary gift, once debts have been paid off and your other beneficiaries have received their bequests, a specified percentage of your remaining estate will go to a charity of your choice. OTHER AVENUES Depending on your income level and the kinds of assets in your estate, more complex means of making a planned gift may be available to you. Talk to your estate planner to see if creating a charitable trust or establishing a foundation is the right move for you.
PUTTING A PRICE TAG ON YOUR HEALTH THE MONETARY BENEFITS OF TAKING CARE OF YOUR BODY
We’re constantly told how important it is to maintain a healthy lifestyle, but when the modern world, with its fast-food commercials and streaming services, tempts you toward the sedentary life, it’s easy to justify putting your health on the back burner. Thankfully, the monetary benefits of maintaining your health may provide the perfect incentive. Consider this: A recent Johns Hopkins Bloomberg School of Public Health study determined that a 40-year-old who shrinks from obesity to being merely overweight could save an average of $18,262 in health care costs for the remainder of their life. Moreover, if that same person maintains a healthy weight, their average potential savings grows to over $31,000. In addition to
Likewise, procrastinating on dental checkups and cleanings could result in bigger complications later on, which will require more time spent out of the office. LESS RETIREMENT RISK In a roundabout way, taking good care of your body bolsters your potential to save for retirement. If your health declines to a point where you can no longer work, both your income and everything you’ve managed to save for retirement can be drastically affected by mounting medical expenditures. BETTER HEALTH HABITS Smoking is the classic example of a poor health habit that drains the wallet. For example, a pack of cigarettes costs between $5–$14, which means that frequent smokers could be spending upwards of $2,000–$5,000 or more a year if they are going through a pack a day. Smokers also pay higher premiums for health, disability, and life insurance. By focusing on your health, eliminating harmful habits, and employing preventive care, you may be able to improve your self-confidence and quality of life. You may also be able to reduce expenses, enjoy more of your money, and boost your overall financial health. That’s a win-win all-round.
saving on health care costs, here are a few other ways health habits can affect your bottom line.
FEWER MISSED DAYS Making sure you schedule regular
preventive appointments with your doctor and dentist can potentially reduce losses. For example, even minor illnesses can leave you stuck at home, potentially missing out on several days’ worth of work.
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