Mission Matters

Estate Planning

Sometimes even the best intentions can lead to unexpected stress and conflict. Too often, we see the unfortunate consequences of ineffective estate planning: disputes among family members, unnecessary estate settlement expenses and sometimes, punitive transfer and income taxes.

All of this can be avoided through careful, efficient estate planning. Here are some helpful tips to keep in mind as you get started:

1. COMMIT TO THE PLANNING PROCESS

While it is easy to procrastinate when it comes to matters touching upon your mortality, developing an effective estate plan is an essential component of your overall financial health. Plus, it provides valuable peace of mind for you and your loved ones.

For more estate planning guidance and a useful checklist to help you get organized, please visit our website at www.MasonicCharitiesLegacy.org.

2. WORK WITH TRUSTED ADVISORS

The first step is to identify and consult with trusted advisors about your goals and intentions. Attorneys, accountants and financial advisors often play important roles in the process. If you are considering a gift to our Masonic Charities, our team is also ready to assist.

Masonic Charities Update

3. BE PREPARED

Complete an estate planning questionnaire and checklist and gain a basic understanding of common estate planning tools, such as financial powers of attorney, health care directives, wills, and trusts. A thorough form questionnaire and information about these tools is available to you at www.MasonicCharitiesLegacy.org.

Understand your assets and how they are titled. Identify assets that may pass to beneficiaries “outside of your will,” such as jointly owned or “payable on death” property, life insurance and retirement plan accounts, and assets that may require special attention in the planning process, such as “tangible” property with sentimental and/or economic value and real estate.

Consider the circumstances of your intended beneficiaries. Among other things, age, disabilities, personal relationships and financial position may be important factors.

4. BENEFICIARY DESIGNATIONS

Review and update the beneficiary designation forms for your retirement plans, life insurance and annuities. In addition to naming primary beneficiaries, consider naming contingent beneficiaries. Remember that these designations control who will receive these assets, even if your will or trust names other beneficiaries of your estate. We recommend that you keep current copies of your beneficiary designation forms with your estate planning documents.

If you would like to make charitable gifts as part of your estate plan, using tax deferred retirement accounts has advantages. While your heirs will pay income tax on amounts received from these accounts, charitable beneficiaries are exempt from income tax, making the entire amount available to support their missions. It is generally more tax efficient to use tax deferred retirement plans to make charitable gifts and your other assets to make gifts to individuals.

5. DEVISE A TAX STRATEGY

Reducing federal and state transfer and income taxes is often a priority objective in estate planning. There are many strategies to consider. Remember that there is not a “one size fits all” strategy for estate tax planning. We can assist you and your advisors in modeling many of these strategies. We can also introduce you and your advisors to attorneys who specialize in this area to help make sure these strategies are implemented properly.

6. CONSIDER CHARITABLE GIVING

Whether you have a large or small estate, consider the charities important to you and how you would like to support them in fulfilling their missions. Be precise in describing your charitable beneficiaries and your desired use of gifts. Consider strategies that may be useful in planning for yourself, your loved ones and your charities, while at the same time reducing the impact of taxes. For example, charitable gift annuities, charitable trusts and the gifting of retirement plans and appreciated stock are all strategies that may be appealing to you based on your circumstances.

Our Masonic Charities have a long track record of helping our donors, large and small alike, achieve their charitable and estate planning goals. From working with your advisors to structure and model complex arrangements to simply providing accurate language for a bequest, we are here to help you.

7. COMMUNICATE AND ENSURE ACCESS

Talk to your agents and personal representatives concerning your estate planning.

Organize your financial and estate planning records, including a list of online financial and social media accounts. Keep all your passcodes to such accounts and to your electronic devices updated, and ensure your agents and personal representatives know how and where to access them.

8. PLAN FOR INCAPACITY

Identify the persons you want to manage your affairs should you become incapacitated and to carry out your wishes following your death. You will want to name an “agent” to manage your financial affairs should you become unable to do so, usually through a general, durable financial power of attorney.

You will also want to name a “health care agent” and provide your intentions concerning your care should you become incapacitated, through an Advanced Health Care Directive.

These may be the same person or different people; either way, you should name alternates in the event one of your appointed agents becomes unable to serve in that capacity.

9. PRE-PLAN YOUR FINAL ARRANGEMENTS

By making funeral and burial arrangements in advance, you will alleviate a heavy burden on your loved ones and allow them to more easily experience peace as they grieve.

FRANKLIN LEGACY SOCIETY

Benefits of the Franklin Legacy Society

Invitations to special events

Recognition on a special donor wall

Recognition in the Masonic Charities Annual Report

Special NEW gifts for joining depicting Benjamin Franklin at his printing press: a leather-bound journal, an engraved wooden pen (handmade by members of the Masonic Village at Elizabethtown Roosters Woodshop) and a pin.

For an application to join the Franklin Legacy Society, please contact the Office of Mission Advancement and Development.

GIVING TRENDS 2024

WILLS AND TRUSTS

“SMART” GIVING

Donors are increasingly implementing “tax advantaged giving strategies.” For example, as the stock market has rallied, we have received an increase in gifts of longterm held, appreciated stock in public companies and of retirement plan assets. In most cases, the donor will be entitled to an income tax deduction for the full value of the gift, and the charity will not be subject to tax on the capital gains or deferred income tax associated with the donated assets.

SPLIT INTEREST GIVING

All forms of “split interest” giving remains popular. Split interest gifts are those where property is contributed to charity but the donor reserves some right in the assets. The two most common types of split interest gifts are charitable gift annuities and charitable remainder trusts. Due to the strong credit of Masonic Charities and attractive interest rates, demand for Masonic Charities’ gift annuities remains especially strong. We regularly work with donors and their advisors to model these types of gifts and are standing by to assist you if you have any questions about these types of planned gifts.

We have seen an increase in requests to work with donors and their advisors to carefully craft language for “restricted” gifts in wills and trusts. “Restrictions” are used to ensure that a donor’s funds are only used for the specific purposes directed by the donor. For example, a donor may restrict a gift to be used for a historic manuscript presentation or a scholarship, or to make only the income earned on the principal amount of the gift available.

FIDUCIARY SERVICES

We have seen an increase in requests for Masonic Charities to serve as executor or trustee for a donor. Under certain circumstances, we can accommodate this request. We would be happy to discuss if this service would be suitable in your circumstances.

One Masonic Drive

Elizabethtown, PA 17022

An Opportunity to say “Thank You”

In the first of half of 2024, we enjoyed the opportunity to personally thank many of our donors at donor appreciation socials, Widows’ Guild luncheons and our Masonic Children’s Home Youth Appreciation Day.

To all our donors, we again say “thank you” for entrusting us with the responsibility of ensuring the continuation of our Masonic Charities. Without people like you, past and present, our many charitable activities would not be possible. We are humbled by your support and will always strive to honor you by being good stewards of your contributions and our time-tested charitable missions.

We are taking a fresh look at how we recognize our valued donors. We continue to recognize those who bless our Masonic Charities with generous contributions on our donor walls at various locations across the Commonwealth. We update our honorarium and memorial recognitions on our Masonic Charities website quarterly to acknowledge those who are making a difference in these very meaningful ways (visit MasonicCharitiesPa.org/gift). Lastly, we have initiated a new look for our Franklin Legacy Society, which includes a leather-bound journal, handcrafted pen and pin (see previous page).