We smile when we see a bumper sticker that says, “Being of sound mind, I spent it all!” There is something about believing the resources saved through a lifetime of careful investments, pension fund payments and RRSP contributions will ensure that our retirement years will be filled with adventurous travel experiences, resources to invest in hobbies, and an enjoyable experience of what some people call the “golden years.”
One of the realities of the human condition is that there is not a defined end point to our lives. Some of us leave this world unexpectedly early, and some people live surprisingly long and healthy lives. Also shockingly, living our years extremely obsessed with health and longevity, while it may have certain benefits, is not a guarantee of a long life. Hence, we have the examples of the cheery centenarians who attribute their longevity to their drinking and smoking habits and regular ingestion of artery clogging foods. Good luck and a good genetic mix seem to be important factors in the life expectancy lottery, and we cannot control those factors very reliably.
That means that most of us must plan for our older years without having a clear idea of some of the important variables. How many years will you live? How mobile and healthy will you be? How long will you stay in your home? Will you need many resources for health care or attendant care in the later years of your life? Will you develop champagne tastes for luxury experiences and designer consumer goods? How important is it for you to leave a financial inheritance for your family members? Are there other causes you would want to support through your estate planning?
Many of us prepare our first wills just after we have children, and it seems prudent to have a plan to provide for resources, guardianship, and security for minor children if both parents die before the children reach adulthood. We also try to make it simple for a spouse to transfer accounts, properties, pension funds, and other assets to the surviving spouse, so that there is less financial turmoil for a person who is also dealing with loss and grief and worry.
Later in life, after the death of a spouse or a divorce, it is important to make a legacy plan that reflects the current conditions in life. The care of minor children is no longer an issue, and questions of inheritance of estate assets after the death of the remaining spouse become key considerations.
This is also the time to think carefully about potential legacy gifts to organizations and causes that are of interest or concern to the will maker. Many people feel that they are not wealthy enough to consider making gifts to charities in their estates, but every person has the capacity to make some kind of charitable contribution. It really does not have to be very large to be of importance.
It can be helpful to make a list of ten different organizations or causes that have been of importance in your life. Consider the following categories:
Educational institutions: Which schools or universities had an impact on your life? Would you like to leave a gift to support the school or create a student scholarship or name a chair or a department?
Health care facilities: Is there a hospital, care home, special health care program that you would want to thank for exceptional support during your life?
Research areas: Is there a field of medical research, scientific development, environmental impact, nature preservation, or historic research you want to support?
Faith based institutions or programs: If you have been a member of a religious faith group during your life, you may want to support the church, one of its missions, camps, or social programs with a gift.
Cultural and arts organizations: If you have loved museums, art galleries, theatres, orchestras, the opera, the ballet, or choral music, you can find a way to make a legacy contribution that will make a big difference in the future.
Sports: If you want to support youth sport programs, training programs, athletic development, or a sports training facility, you can find many organizations that would be very thankful for your support.
Social causes: Poverty reduction programs, programs for training, food banks, housing programs, legal services, and social support programs of many types exist that could use your legacy gift for better the lives of people in your community.
National causes: There are national parks, heritage sites, wetlands, rare ecosystems, language preservation, and wildlife preservation services that need support to continue their programs.
International causes: Do you have an interest in international development, world health issues, clean water, the environment, or world peace? Your legacy gift can help to change and protect the world.
Did you think of at least ten causes or organizations you would like to support if you had money to give away? It would be a rare person whose life has not been influenced by some organization or cause. I think of the industrialist and philanthropist Andrew Carnegie, whose life was transformed by access to libraries, and who later in life supported the development of Carnegie Libraries around the world.
You and I may not be able to start programs around the world, but we do have a responsibility to leave some charitable impact on this world. It is an important example of generosity to leave for our children and grandchildren.
Next month I will write about the ways that you can know that an organization has given consideration and set up a good legacy gifts program that can give you confidence that your gift will be handled responsibly.
Trudy Schroeder provides project planning and management services to the community through Arts and Heritage Solutions.