Monday, December 19, 2011 3 Reasons To Give Money Away, With or Without a Tax Deduction | Houston Estate Planning Law Firm
There is something that happens to your soul when you cut a big check to someone in need.
You signal to those very fears and desires which so often control your unconscious thoughts: "Money does not rule me. I have more than enough, so much more than enough that I am giving it away." Then, of course, something special often happens: more money seems to find itself in your hands.
I am not advocating a mystical pay-it-forward scheme; I am simply making the observation over years of being a student of how money "works". And, "coincidentally" it just seems to find itself in the hands of those who give it away.
Why is it that those who are benevolent seem to be well-taken care of, even rich? I know many families of significant means who were NOT wealthy when they started to give in large percentages of their income (15%+). Coincidence?
So I would say that this first dynamic is one significant reason to give: Your soul is set free from the shackles of fear and greed.
Here are two more big reasons:
2) You build a network of grateful friends and organizations. You will never know when someone to whom you have donated or given (be it time, money, connections, or other resources) comes back to you with something you need, at just the right time.
Personally, I have seen this dynamic in play enough times to not dismiss it. When you act or give generously, it is the most powerful form of networking on the planet. Obviously, there are better, less self-interested reasons to give ... but there sure are worse ones.
3) Your perspective can shift in an instant. When you don't just give money, but also time and heart, you often learn heretofore unrealized reasons for being grateful about your own present circumstances.
Sometimes giving to institutions that work with the poor can bring home appreciation of your own enormous wealth. And it can also bring home awareness of a poverty which is not solved through adding zeroes to a bank balance. But either way, if you do it right, you are changed for the better.
With these reasons, AND the monetary benefits to your tax return, I urge you Amber: stretch yourself this month. Give more than you think you should. See what happens.
I promise it will be good.
All this said, above, I firmly advocate for being careful with your planning of said giving. I don't suggest impulsivity, just some small risk-taking.
But do not risk losing out on the tax advantages to gifting appreciated stock, or other, less common, forms of gifting. I suggest consulting with your tax professional to ensure that while your soul grows, so too does the amount you can deduct on your 2011 tax return!
Thursday, September 01, 2011 How a Houston Estate Planning Lawyer Can Help You Create Your Legacy By: Kimberly Hegwood, Houston Estate Planning Attorney
There are a variety of reasons that people in Houston seek out a qualified estate planning lawyer. There’s the need to provide for your heirs or to protect them from tax penalties, for example. But, many people are discovering that an estate planning lawyer can also help them develop the legacy they wish to leave behind. Planning now can help you ensure that your beliefs and values are not only upheld, but even advanced by the choices you make for your estate.
While creating a plan is important for your family, there are many other ways to use your worldly wealth. In an age when people are becoming more introspective and choosing to live their ideals, it is comforting and even exciting to know that you can continue to do so after you are gone. It’s not just about donating money to a good cause, it’s about knowing that your life has made an impact on those people and ideals that are most important to you.
Creating a legacy with the help of your Houston estate planning lawyer also affects those who knew you in life. Children, grandchildren, and other significant people are able to see your example of grace and generosity. They will remember your actions with pride and will hopefully follow in your footsteps to support your cause or to take up one of their own. That is the true meaning of a “legacy.”
Defining Your Legacy
While a skilled estate planning lawyer will be able to help with the details, creating a fitting legacy certainly begins with you. The first step is to take a look at your own values and interests. What are you passionate about and why? Perhaps you are an animal lover or a cancer survivor or a bicycle enthusiast. The most important aspect of creating a true legacy is to choose a cause that truly speaks to your heart.
Your contribution, no matter how large or small, may not be enough to find a cure for a disease or eradicate animal cruelty in <insert city>, but by homing in on your cause, you can find ways to make a significant impact. Perhaps you have enough material wealth to donate a piece of cutting-edge medical equipment to your hospital’s oncology department. Or maybe your wealth will allow you to pay for new infrastructure to support the expansion and growth of your favorite cause.
Of course, you may have a smaller contribution to make, but it can still be put to amazing uses. Offsetting the cost of adoption for a few animals at the local shelter may not seem like a “grand gesture,” but for the families and pets adopted, it will mean the world. If you are an enthusiast or collector, how could your physical assets benefit others? Could you contribute your prized art collection to a museum or donate your bike collection to a nonprofit that provides them to low-income children?
Setting up a legacy with your Houston estate planning lawyer does not need to be all about money. It’s about preserving part of your spirit and passion in ways that you are able. It’s about knowing that you’ve done something important with your life. It’s also about being someone that future generations will remember with pride and respect and inspiring them to create legacies of their own.
If you’re now ready to start laying the legal framework of your “legacy plan,” then be sure to give our Houston wills and trusts office a call at (281) 218-0880 and ask to schedule a free Lifetime Legacy Planning Session. These sessions are normally $750, but we’ve made space for 10 people to come in absolutely free with the mention of this article. Call today! Tuesday, August 16, 2011 Designating a Charitable Gift with Your Houston Wills LawyerAs a wills lawyer in Houston, it is always gratifying to see clients who are both able and willing to use their assets to support their favorite cause or charity through a will or trust. Even small gifts can have a large impact, and many people are taking this into consideration during their estate planning these days. Working with a reputable wills lawyer in Houston can help you ensure that you are meeting the necessary requirements so that your gift, no matter the size, will have the most impact.
There are countless reasons to designate a charity when planning your will. In many cases, the individual simply wants to use some of his or her estate to further a cause that is near and dear to his or her heart. This can come in the form of a financial contribution, the transfer of real estate, or even the donation of personal items that will further the charity’s mission.
From a more pragmatic point of view, some people choose this route in part because of the tax-exempt status of most nonprofit organizations. They know that their gift will not be subjected to “death taxes” or other laws that would decrease the overall value of what they have to give. What we have created or earned during life is a significant source of pride, and many people derive more satisfaction from knowing that it will pass fully to their charity of choice.
Some of the most common ways to remember a charity in your will include:
- A specific sum of money
- A certain class of property, such as stocks
- A specific asset such as an automobile
- A percentage of the “residue” after other items have been distributed to beneficiaries
- The remainder after debts, expenses, and bequests have been made
- A contingent bequest (if a beneficiary does not survive you, his or her portion would go to the charity)
In Houston, there are specific rules and regulations that must be followed to guarantee that your gift will make it smoothly into the hands of the intended recipient. For example, it is helpful, if not necessary, to identify the organization by its full legal name. There is also some typical wording that can help make your wishes clear and easy to follow, as well. Again, an experienced wills lawyer will be able to guide and direct you in the process.
Ready to get starting in creating a charitable giving plan that benefits your charity or non-profit of choice? Then be sure to call our Houston estate planning law firm at (281) 218-0880 and ask to schedule a free Lifetime Legacy Planning Session ($750 value) with the mention of this article. Monday, July 25, 2011 Estates Attorney in Houston Discusses Giving When It Counts, Outside Our Circle
By: Kim Hegwood, Estates Attorney in Houston
When Carol Burnett was graduating from UCLA's theater department, the center of the comedy and musical world was New York City. But the grinding poverty she had known since childhood prevented her from leaving California for the bright lights of Broadway and left her at odds with her career goals.
One night, Burnett and some fellow students were asked to perform a comedy skit at a professor's party. After the performance, an older man and his wife approached her and asked her what she wanted to do with her life.
She told them about her dream of acting on Broadway, and they asked why she wasn't doing it already. Burnett explained that she first had to save enough money to get there and establish herself. The man told her to come see him the following week in his office.
Burnett showed up--guarded and skeptical about why the man wanted to see her. He wrote her a check for $1,000 with these stipulations: She must always keep his identity a secret; she must move to New York to give herself the best chance for success; she had to pay the loan back in five years; and finally that she would help others get their start once she became successful.
Burnett accepted the conditions and moved to New York, where her career in musical comedy took off. After five years passed, Burnett sent a check for $1,000 to her benefactor on the exact anniversary of the loan, and though she had kept all of her promises thus far, she never heard back from him.
However, years later (and after Burnett had now become a household name), she met the couple for lunch and asked whether the gentleman had received her check.
The man answered yes, but didn't say much else. After lunch, the man's wife took Burnett aside and told her that her husband was very proud of what Burnett had done, but was too shy and embarrassed to say so.
The wife also said that in all the years that had gone by, her husband had never told one person of his loan to Burnett. He didn't want anyone to think he was trying to take credit for her success, the wife explained.
Moved, Burnett took the opportunity to kiss her benefactor good-bye and thank him for giving her that all-important start.
Not long after that lunch meeting, she learned that her benefactor passed away. But Burnett continued his largesse by developing young talent on her variety show. And to this day, though she has often recounted this fairy tale-ish turn of events, Burnett has never revealed the identity of the man who launched her career--and her sense of philanthropy.
Now, friend -- who will be your next Carol Burnett? Perhaps it is time we all expand our radar, and find such deserving young people.
Is there any better investment?
And, if you would like to sit down with me to discuss how such giving can be structured within your estate, I am happy to create time for that sort of conversation.
I am right here: 281-218-0880
|