Why You Should be Estate Planning Now
Take the anxiety out of your family's future today.
Feeling stressed about the future these days? You’re not alone: since the pandemic hit, estate planners have reported a huge jump in interest from people of all ages who want to make a will, plan for bequests, and generally get their affairs in order. And because so many of us are working remotely, socially distancing, and generally hunkering down, now is the perfect time to think about—and actually make—a long-term plan for you and your family.
It’s also a great time to think about supporting Dartmouth—a planned gift that you make now will help Dartmouth in the long run, and can provide you with both financial benefits and long-term security. What’s not to love?
Here are five stress-free ways to make a plan right now for your financial future:
Create or update your will.
It’s one of those things most people avoid, but it’s pretty straightforward: writing a will or updating your existing will or trust to confirm your intentions is one of the most important things you can do for your family. People tend to create a will and forget about it, but it’s important to make sure this vital legal documents stays current with your situation—and the plans you have for the future.
If you’re thinking of including Dartmouth in those plans, one of the most common and meaningful ways to support the College is through a bequest or beneficiary designation to your retirement or life insurance plan. It is simple to do and you can direct it to initiatives that matter most to you, such as financial aid. Or you can leave it unrestricted and Dartmouth will direct it where it’s needed most.
Review your retirement benefits
This is one of the most overlooked—and important—things you can do to make sure your retirement earnings go where you want them to after you die. It’s also easy: check your retirement plan and review the list of beneficiaries, especially if you have had life changes such as a marriage, children, or divorce since you first enrolled.
This is also an excellent and simple way to make a gift to Dartmouth: you can designate a percentage of your retirement earnings to the College by naming it as a beneficiary of your plan. You may not know that a large portion of accrued income in a retirement account can be lost to taxes (both state and federal) if the income goes to someone other than a spouse—but Dartmouth can receive the full value of the gift tax-free. It’s a great way to support future students with no effect on your income.
Consider supporting Dartmouth—and outside charities—through a donor advised fund.
All charitable organizations need a great deal of support during this time. With a Dartmouth Donor Advised Fund (DDAF), you can direct funds to charities of your choice including Dartmouth—all from one fund. You pay no fees and your gift is invested alongside Dartmouth’s endowment, receiving a solid rate of return (an annualized return of 10.4 percent over the past decade). A DDAF is a good opportunity to involve your family members in making gift decisions together, inspiring a younger generation of philanthropists.
Inventory your valuables.
We’ve all had a lot of time at home these days, and most of us are realizing just how much stuff we have that we don’t want, but also don’t know what to do with—where is Marie Kondo when you need her? Here’s a solution that benefits you and Dartmouth: Now is the time to take a look at some of your appreciated assets—artwork, automobiles, or antiques, for example—that you are happy to live without, and consider making a gift of them to the College. You’ll receive a charitable tax deduction, simplify your life, AND you receive full credit of your gift in The Call to Lead campaign. In turn, Dartmouth will sell these assets and use the proceeds toward programs or initiatives chosen by you, such as financial aid for students. It’s a win-win!
Focus on fixed income
If the economic events of the past several months have you anxious and wanting some guarantees, consider investing in a financial option that will provide you with a reliable fixed income. Gift annuities offer this reliability—you invest in an annuity that pays out a guaranteed rate of return for the rest of your life, so you’ll always have funds to count on. If making a gift to Dartmouth fits into your plans, you can invest in a charitable gift annuity that provides you with a guaranteed amount of income every year. When you die, the remaining balance goes to Dartmouth and will be designated to the areas of the College you prefer to support. It’s a great way to make a commitment to Dartmouth that doesn’t cut into your financial stability.
Planning for the future doesn’t have to be anxiety-provoking—it also doesn’t have to be complicated. Our gift planning team can help guide you through the process of making decisions that benefit you and your family, make you feel comfortable about your future, and support Dartmouth in the ways you want.
We would love to hear from you.
And remember: If you have already included Dartmouth in your will and want to ensure your gift is counted toward The Call to Lead campaign, call Gift Planning at 800-451-4067. Get that gift credit you deserve!