It’s never too early to start planning for your legacy. Seeking help from a financial planner can be a helpful step in securing your financial future. Below is a list of frequently asked questions that will help you get started in the right direction and begin to develop some long-term goals as you begin planning your estate.

Is there a charitable component to my estate plan? If I want to leave 20 percent of my total estate to several charities, how would you recommend I accomplish this?

What is the most tax-burdened asset I own? (Likely answer: Your tax-deferred retirement plans — IRA, 401(k), 403(b), etc.). Why don’t we use the remainder of these plans to make my end-of-life charitable contributions? I could name my spouse the primary beneficiary, and our charities as secondary beneficiaries, right?

Would it be beneficial for me to contribute some of my highly appreciated/non-income producing stocks to a charitable gift annuity or charitable remainder trust, which would pay me 5+% income? Wouldn’t this also give me a current charitable deduction, and capital gains tax savings?

Do you, or someone in your office, have access to PG Calc or Crescendo software, so we could calculate the outcomes and benefits of several alternative charitable life income arrangements?

What is the current allocation of my stock and bond portfolio? As I get older, wouldn’t it make sense to contribute some of my appreciated stock to a charitable life income arrangement, thereby moving some of my portfolio from stocks to fixed income without incurring capital gains tax on stock appreciation?

How much paid up, whole life insurance do I have? Do I need that much now? Couldn’t I give my life insurance to charity?

I own some real estate that I am not using. It has appreciated a lot in recent years and doesn’t generate any income for me. Why don’t we give all of it, or an “undivided fractional interest,” to charity?

My children are in my will, but they could use some of their inheritance now to make a down payment on their first home/buy a new car/fund their children’s education. Can I make a larger gift (a gift that exceeds the annual gift amount of $12,000) now, without incurring gift taxes? (Answer: Yes! You can give them the total of your estate tax exclusion during your lifetime without incurring any tax yourself or tax liability for them. The 2006 amount is $2,000,000 for a single person and $4,000,000 for a married couple!)

If you have any questions regarding your estate planning, please feel free to contact our Foundation office at (610) 284-8532 at Delaware County Memorial Hospital or (610) 447-6311 at Crozer-Chester Medical Center. You may also visit our website at www.crozer.org/plannedgiving.