If you’re like many people, you and your spouse (if applicable) currently have either a will or living trust in place. If so, you are to be commended! You have wisely made provisions for how your worldly assets will be distributed when you are called home to Heaven. According to a recent study, about 54% of those 55 and older currently have an estate plan.
If this is the case, does this mean you are “all set” as far as your estate is concerned? The answer is maybe—or maybe not. Among the different ways to bequeath or leave your worldly assets, let’s zero in on wills for the moment.
If you are among the 54%, you may have experienced a life-changing event since you drew up the document. If so, you will want to at least review your will for potential changes to be made.
One of the most common of these is that your children have now grown up. When they were young, your will may have included a trust for minor children which is no longer needed. Other life-changing events could include:
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The death of a spouse
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You marrying or remarrying
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The birth of (a) child(ren), grandchild(ren), etc.
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The death, divorce, or marriage of a beneficiary (e.g., adult child[ren] or grandchild[ren])
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A change in the mental or physical condition or life circumstances of your executor (or alternate executor)
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Moving to another state
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Buying or selling a business
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Purchasing or selling real estate
In addition to the above, reviewing and redoing your will provides an opportunity to leave a gift to ministry. This is something you may have thought about but didn’t like the idea of redoing your will just for this purpose alone (which is understandable). If you need to redo your will (or are creating a will for the first time), however, this provides a great opportunity to leave a bequest to a non-profit of your choice.
Statistically, about 10% of those with an estate plan have included a future gift of some kind for a charitable organization therein, or one in ten (or about 4-5% of the population overall, since roughly half of all households have no will or estate plan in place). A key factor in their decision to leave a gift (or add one later) can be whether a charity or ministry they care about has asked them to include a bequest for the same.
So, on behalf of Lutherans For Life (LFL), its mission of Gospel-oriented, Christ-centered life affirmation, and those to whom it ministers, I would like to ask you to consider a bequest to LFL if you decide to redo your will (or are preparing one for the first time).
Just how can you leave a bequest to the LFL via your will? There are four basic ways:
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A fixed dollar amount or percentage of your assets. Of the two, a fixed percentage is popular because if your estate grows or shrinks before you are called home, the amount that is bequeathed to LFL will likewise be adjusted automatically.
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Specific Property (e.g., Grandma’s ring, a coin collection, vacation or farm residence, etc.)
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Percent of Residuary. This is a percentage of what remains in your estate after all specific bequests have been made (e.g., to loved ones).
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Contingent. This is what might be called a “worst case scenario” bequest. In short, this is where an organization such as LFL is named as the beneficiary if (and God forbid!) any common disaster or incident should result in the death of all persons you have named as beneficiaries (e.g. your family).
Now, what wording should be used in leaving a bequest to LFL? We recommend the following: “Lutherans For Life, 1101 5th Street, Nevada, Iowa, 50201, 515-382-2077, (EIN 41-1374293), to be used at the discretion of its Board of Directors in accordance with its mission.” Of course, you will want to consult an attorney to see if you should revise your will (or create one for the first time), discuss the specific ways above to leave a bequest to LFL (and possibly other ministries), etc.
All of what is mentioned above, however, involves either creating or redoing your will. What if you have just completed a new one? What then? The answer is that you may be able to amend your will via a codocil to leave a gift for LFL.
Some years back when I was at another Lutheran organization, there was a young lady who wanted to leave $5,000 to one of her favorite ministries; however, she had just redone her will.
She contacted her attorney about using a codicil. He said it would work and drew one up to keep all things as written in her new will, except that $5,000 be left to “_______Lutheran ministry” upon her death. In her case, this revision cost her under $100 to make.
Once again, you will want to check with an attorney to see if a codicil to leave a gift to LFL will work, and if so, to prepare the amendment for you.
Also, in regards to charitable bequests, a person can avoid seeing their attorney by simply having an investment, such as a Certificate of Deposit, payable on death to Lutherans For Life. Usually this works best if you would like to leave a gift in the range of $5,000 or $10,000. It is also completely revocable.
In summary, I hope the thoughts shared above are helpful both in your overall estate planning and specifically on how to remember LFL via the same. Should you have any questions, feel free to contact me at 512-468-9777 or jhawkins@lutheransforlife.org.
Please note this article is not intended as legal or financial advice. For assistance in specific cases, you are encouraged to seek the advice of an attorney or other professional advisor.