At a glance
• Why establish a will or trust?
• What is a charitable bequest?
• Is a living will the same thing as a healthcare power of attorney?
PREPARED FOR THE BENEFIT OF THE FRIENDS OF CHRISTIAN APPALACHIAN PROJECT
As fall brings a sense of renewal, it’s the perfect opportunity to review your estate plan. Updating your estate plan ensures that your wishes are followed. It’s all about making life as easy as possible for the people we care about most.
Did you know, a surprising 68% of US adults have not created a will or living trust?
Many people feel like they don’t have enough assets to bother making a will. But estate planning isn’t just for the wealthy. It’s for anyone
who’s managed to accumulate any assets. It’s about being smart and thoughtful with what we’ve got. Let’s make sure your legacy reflects your values and helps those you care about most.
ENSURING THE FUTURE
The most fundamental way you can help ensure the future of Christian Appalachian Project (CAP) is to make a provision in a will directing a percentage or specific amount of the estate to CAP. Proper planning ensures that family and charitable priorities are realized.
Estate Planning Begins With a Will
If you prefer not to rely on the state’s default distribution method for your assets, it’s crucial to draft a valid will that reflects your wishes. Crafting a will is a process that merits careful consideration and the expertise of an attorney. Without a will, the laws of the state in which you reside will prescribe how your estate is distributed. Once your will is in place, treat it as a dynamic document that may require updates.
CAP has partnered with FreeWill to make creating a will safe and easy for our donors through our website.
Scan this QR code to create your will today and make a lasting impact in Appalachia.
The Living Trust
In addition to drafting a will, many people opt to establish a revocable living trust. This is a legal arrangement that not only outlines how your
assets should be handled and distributed upon your passing but also benefits you during your lifetime. Essentially, a living trust - also known as an inter vivos trust or revocable trust - places your assets in a trust to be managed while you’re alive, then the assets pass to your chosen beneficiaries after your death. This is done under the guidance of a successor trustee, whom you appoint.
Creating a living trust has several benefits. It can bypass the often costly and lengthy public process of probate court, keeping your estate matters private and simplifying the transfer of assets to your beneficiaries. It also avoids the need for court intervention to appoint a guardian for your assets if you become unable to manage them yourself.
MAKING A CHARITABLE BEQUEST BY WILL
Over the years, many generous individuals have chosen to support CAP by including a specific bequest in their wills. This approach is particularly appealing for those looking to continue their legacy and support causes they care about. There are several ways to include a bequest to CAP in your will. While you will need the assistance of your attorney in determining which way best fits your circumstances, the following are some methods used in making a gift by will.
Outright Gifts – A gift made by bequest can be an outright gift of a percentage of your estate or a specific sum of money. For example, a donor could designate by will as much as 50% of their estate. Alternatively, one could designate a specific sum, such as $50,000 or all of your shares of XYZ Corporation stock to CAP.
Residual Gift – What is left in your estate after all outright, specific, and other similar gifts
have been made is called the residuary estate. You may direct in your will that this residuary estate be transferred to specific persons, or you can have your residuary estate pass to a charitable institution such as CAP.
Contingent Beneficiary – You may wish to consider naming CAP as the contingent beneficiary of your will. This means that our institution would benefit only if the beneficiaries
named in the will are not living upon your passing. Without designating a contingent beneficiary, should all beneficiaries be deceased when your will takes effect and there are no other close relatives, it is possible that the estate could pass to distant relatives by default. Often this involves expensive litigation. If no relatives can be found, the entire estate could pass to the state. By naming CAP as contingent beneficiary, you prevent this from happening.
Gifts in Trust – You may establish one or more trusts in your will that benefit family members
There are several ways to include a bequest to CAP in your will. One of the most common errors with charitable bequests is the use of an incorrect name for a charitable institution. Therefore, it is important that the correct legal name and address is verified with the charitable institution prior to documenting it in your will. The following are samples of possible wording
or other persons as well as CAP. There are many trust variations, and it is essential to consult an attorney in drawing up such a trust to comply with complex Federal regulations and qualify for the allowable estate and income tax charitable deductions.
Codicil – If a gift to CAP is not yet included in your will and you wish to make such a gift, you can do so through execution of a codicil (amendment) to your will. Your attorney should be consulted to draw up the codicil. This is often relatively simple and inexpensive.
SAMPLE WORDING FOR CHARITABLE BEQUESTS
for a charitable bequest which you may review with your attorney:
• Unrestricted Bequest: I give to [name of institution - use the correct legal title, city, state], % of my adjusted gross estate, or the sum of $ for its general purposes.
• Restricted Bequest: I give to [name of institution, city, state], % of my adjusted gross estate, or [the sum of $] to be used for . If the Board of Trustees at any time determines, that [name of institution]’s purposes would be better served by using a portion or all such sum for the [name of institution] general purposes, such portion or all may then be used for such general purposes.
Planning for how we wish to be cared for in times of incapacitation is essential. Without clear directives, family members may face challenging decisions.
Many states allow the creation of a living will or a health care power of attorney. A living will outlines your preferences for medical treatment and care, while a health care power of attorney enables you to appoint someone you trust to make health care decisions on your behalf if you’re unable to do so.
Conclusion
Ensuring your estate is distributed exactly as you’ve envisioned, rather than by a state-imposed formula, allows you to continue to support those people and causes which have been so important to you during your life.
Estate planning goes beyond the distribution of assets; it’s also about making thoughtful decisions regarding our health and care.
As you work with your attorney in drafting or revising your will, we kindly ask you to consider making a bequest to CAP to further our mission of building hope and transforming lives in Appalachia. If you have questions or would like additional information about our mission and programs, please contact our Planned Giving Officer Molli.
