News
Ask the Expert: David Sandhu, Sr. Financial Advisor, EverSource Wealth Advisors
Updated for Estate Planning Week
It is never too early or too late to start planning your estate! Estates are constantly evolving. Take time every year (so why not Estate Planning Week?) to review your work and see if it needs any updates within your current social and financial landscape.
In this issue of “Ask the Planned Giving Expert” we share insights from David Sandhu. David is a former engineer for Lockheed Martin, SpaceX and Raytheon, and a proud IEEE Foundation donor and IEEE Member. David, an experienced financial advisor, provides important information and useful tools to make informed decisions about planned giving and ensure your contributions have a lasting impact.
Q1. What are the benefits of including a bequest in my will for the IEEE Foundation? Including a bequest in your will for the IEEE Foundation allows you to leave a lasting legacy aligned with your values while offering significant tax advantages, potentially reducing the estate tax burden on your heirs. Additionally, bequests offer flexibility in how you structure your gift, whether it’s a specific amount, a percentage of your estate, or particular assets. This ensures that your charitable intentions are met while also taking care of your loved ones.
Q2. What are the different types of bequests I can include in my will? There are several types of bequests you can include in your will. General bequests are monetary gifts from the general assets of your estate, while specific bequests involve particular items or cash amounts. Demonstrative bequests specify sums to be paid from a particular source, like a bank account, and residuary bequests are made from what’s left of your estate after all other bequests, debts, and expenses are covered. Understanding these options allows you to tailor your will to reflect your exact wishes and priorities.
Q3. How can I involve my family in my charitable giving plans? In my opinion, the best part of charitable giving is around the conversations of the impact being made by the donor. Communicating with and involving your family in your charitable giving plans happens through open conversations about your intentions and values. You can engage in joint philanthropy by establishing family foundations or donor-advised funds. A donor-advised fund is a simple and often low-cost way of establishing a “giving fund” that can pass to your heirs. Additionally, including family members in the decision-making process fosters a tradition of giving and ensures your philanthropic legacy is honored for generations to come.
Q4. Are there common misconceptions about bequests that you can dispel? There are several common misconceptions about bequests. Many people believe that bequests are only for the wealthy, but anyone can include charitable bequests in their estate plans, regardless of the size of their estate. Another misconception is that making a bequest is a complex and expensive process; however, it can often be straightforward, especially with the help of your attorney. Additionally, some think that bequests can’t be changed once made, but they can be amended as your circumstances and wishes evolve. A final misconception is that bequests must be a “large” sum of money to make an impact, when in reality, every bequest to the IEEE Foundation delivers opportunity, innovation and impact across the globe.
Q5. What are the different types of bequests I can include in my will?
There are several types of bequests you can include in your will. General bequests are monetary gifts from the general assets of your estate, while specific bequests involve particular items or cash amounts. Demonstrative bequests specify sums to be paid from a particular source, like a bank account, and residuary bequests are made from what’s left of your estate after all other bequests, debts, and expenses are covered. Understanding these options allows you to tailor your will to reflect your exact wishes and priorities.
Q6. Is it okay to use an online resource for making a will, or do I need a lawyer?
I would always recommend asking a lawyer for legal advice. Online resources have grown in popularity in the past few years, but online guidance is no replacement for talking to someone that knows your specific situation and specific requirements for the state you live in. Online resources might be suitable for simple estates where the donor knows exactly what they need.
However, for estates with substantial assets, multiple heirs, family considerations, or unique wishes, consulting a lawyer is the way to go. Lawyers provide tailored advice, ensure compliance with state laws, and help prevent potential disputes.
Q7. What tax advantages are associated with making a charitable bequest?
One of the benefits of giving, besides the gift itself, is that making a charitable bequest offers several tax advantages. It can reduce the taxable value of your estate, which is particularly beneficial if your estate has tax liabilities. Additionally, certain charitable gifts may provide income tax deductions. Consulting with a tax advisor can help maximize these benefits, ensuring that both your personal and philanthropic goals are met while also benefiting your heirs.
Do you have a planned giving or estate planning question to ask our experts? If so, please contact Danny DeLiberato, Development Officer at 732.562.5446 or d.deliberato@ieee.org. Depending on the nature of your question, Danny will answer you directly or your question may be used in an upcoming reader mailbag Q&A with one of our guest experts.
This article is intended to provide general gift planning information. Our organization is not qualified to provide specific legal, tax or investment advice, and this publication should not be looked to or relied upon as a source for such advice. Consult with your own legal and financial advisors before making any gift.
