Orlando Estate & Elder Law

Last Lesson = Generosity

A New Jersey teacher left a surprisingly large gift for students in will, that will help pay for college.

Genevieve Via Cava taught for years as a special education teacher in New Jersey. She was not a particularly well-known person outside of those she taught. However, she was apparently a very frugal person and was able to amass a small fortune, by saving as much money as she could.

A longtime friend said that Via Cava even refused to get needed hearing aids because of the expense. Via Cava passed away at the age of 89. Her frugality will pay off for future generations of students in the district in which she taught, as The New York Times reports in "New Jersey Teacher Leaves Students $1 Million Gift in Her Will."

Via Cava left a scholarship fund for future graduates. It directs that at least one student from each graduating class be given a scholarship for $25,000. The $1 million that Via Cava donated in total is enough for the scholarship fund to last in perpetuity. That means some lucky students will benefit from Via Cava's frugality and kindness for a long time.

It is always nice when these stories of such people make the news. However, not everyone who leaves money behind for other people does so in this fashion or even in this amount. There are many different ways that a charitable bequest can be made a part of an estate plan.

Visit an estate planning attorney to hear about your options for leaving money to charity.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: New York Times (June 8, 2018) "New Jersey Teacher Leaves Students $1 Million Gift in Her Will."

No Sting For Newman's Own

Congress has passed an exception to not-for-profit law that will allow the Newman's Own company to continue operating as it currently does. Other charities might also be able to take advantage of it.

There has always been a problem with the Newman's Own line of grocery products. It has nothing to do with their quality or taste. Instead, it is how they were initially set up.

Paul Newman started the brand as a for profit corporation to sell his recipes. He donated all the profits to charitable causes. After he died, the company was passed to a not-for-profit foundation. That is where the problem arose.

Not-for-profits are not allowed to control for profit corporations,  since that could be used as a way around corporate tax laws. The law required the not-for-profit to sell the for-profit corporation off by November of 2018. However, Congress has passed a new exception to the rule that will allow Newman's Own to continue operating as it currently does, as Private Wealth discusses in "Paul Newman Still Giving to Charity, Even in Death."

The exception is narrow. To qualify, 100% of the profits of the “for profit” corporation must be donated to charity. The corporation also must be independently controlled and managed from the not-for-profit. There are also a few other minor requirements. This is an exception that was especially crafted for Newman's Own, so most other not-for-profits will likely not qualify.

However, it is possible that other people might be motivated to create similar businesses,  in order to continue giving to charity long after they pass away.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Private Wealth (May 30, 2018) "Paul Newman Still Giving to Charity, Even in Death."

Donating Family Business Shares

Family business owners who would like to leave a charitable legacy behind when they pass away have a unique way that they can do so. They can donate some of their business interests to charity without affecting their own lifestyles very much.

As people get wealthier, their estate planning goals normally begin to get a lot more diverse. People with only a few assets typically have a main goal of making sure those assets go to provide for their families. However, the wealthy have plenty of assets to make sure their family members are taken care of and accomplish other things in their estate plans.

For many another important goal is leaving behind a strong charitable legacy. It is a way to be remembered for doing good things, long after the wealthy person has passed away. There are many different ways a charitable legacy can be created. For example, business owners have the option of giving part of their business away as Wealth Strategies Journal discussed in "The Generous Business."

The idea is fairly straightforward. A business owner can give some of their interest in the business to a donor guided charitable fund, which can then be used to make donations to many different charities. Another benefit of doing this is its charitable tax deduction. Doing this should not have a significant impact on the giver either, because as long as control of the business is still maintained, the owner can continue to draw the same salary for work.

If you would like to leave behind a charitable legacy, talk to an estate planning attorney about the best options for you.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Wealth Strategies Journal (Jan. 29, 2018) "The Generous Business."

Is Wealth The Prescription for a Cure?

A recent trend is wealthy people spending vast sums to fund research into cures for diseases that family members suffer or died from. That can be great, but it can also create problems.

Getting funding to research and possibly cure rare diseases has never been the easiest thing for scientists to do. Since some diseases are so rare, they do not get enough public attention for policymakers and private donors to get interested in funding research.

However, there are many wealthy people in the world. Their family members sometimes have rare diseases.

Through foundations, regular charitable giving and estate planning, many of these wealthy people are taking it upon themselves to fund the research into the diseases that their family members have suffered from, as The New York Times reported in "Bringing Family Wealth to Bear Against Relentless Illness."

This can have extremely beneficial positive effects on research into these diseases, especially if a wealthy donor is able to convince other wealthy friends to also contribute.

Research into several rare diseases has progressed greatly as a result of wealthy donors. However, there can also be problems associated with this type of funding.

In an effort to find cures for diseases, some donors have not adequately ensured that proper scientific and medical protocols are followed and have even pushed hard to not have them followed.

Public policy experts also worry that this funding of specific rare diseases can lead to less research into more common diseases that afflict many more people, as researchers are pulled into the funded rare diseases.

Funding research into curing any disease is important, but donors need to be certain they are doing so following proper protocols and the greater interests of the public.

For more information about estate planning and and benefitting the cause that are important to you in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: New York Times (April 28, 2017) "Bringing Family Wealth to Bear Against Relentless Illness."

Make a Charity Part of Your Celebration

These are times of great economic disparity. While some people blame the wealthy and consider them greedy, many wealthy people are, in fact, looking for ways to stop accumulating things and to help others.

The reality of life in the U.S. and the world at large is that a great percentage of the world's wealth is in the hands of a relatively small number of people. While many people have less than they need to live comfortably, some others have far more wealth than they could ever possibly hope to spend on themselves.

This reality has received a lot of attention from all sides of the political spectrum.

However, while the political debate is raging, many wealthy people are looking for ways that they can use their wealth for good and to stop accumulating things for themselves.

The New York Times recently reported on a new trend of wealthy couples suggesting charitable donations on their wedding registries, instead of gifts they would like to receive in "For Those Who Have It All, Charitable Wedding Registries."

One of the great things about charitable donations is that they are not only optional, but they also allow people to decide for themselves what to give away and to whom.

Wealthy people do not have to wade into the political debate to give to charity. Instead, they can use their money to support causes and organizations they believe in.

If you would like to give to charity, then it is important to do so the right way.

An estate planning attorney can help make sure the charitable giving is done in the best manner for your situation and that it remains in accordance with your wishes.

For more information about charitable and estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: New York Times (March 24, 2017) "For Those Who Have It All, Charitable Wedding Registries

Charity Can Win When Estate Tax Goes

Many people struggle with how much money they should leave to their children in their estate plans and how much they should leave to charities. A charitable inheritance can be a middle ground that also helps passing on philanthropic ideals to future generations.

As wealthy families begin hoping and planning for the repeal of the estate tax, they have begun to cautiously turn their estate planning goals away from minimizing the estate tax burdens on their estates. Instead, they are turning toward how they should divide their estates between their children and charitable institutions.

Parents want to leave their children enough assets to support their needs without giving so much that bad habits could form. Many people would also like to continue the charitable giving they have undertaken during their lifetimes. Finding an appropriate balance between these goals can be difficult.

There is, however, a way to do both as Financial Advisor explains in "Charitable Inheritance Dilemmas."

The idea is relatively simple and something many families already do. Money can be left to children.  The gift of giving to charity can also be left to them.

Money can be set aside and a donor advised fund created for each child to maintain. The children can then decide which charities should receive the funds. This is called a “charitable inheritance” and it is a good way to teach future generations about the importance of philanthropy.

If you are interested in charitable inheritances or other ways you can meet all of your estate planning goals, contact an estate planning attorney.

For more information about charitable and estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Financial Advisor (Feb. 1, 2017) "Charitable Inheritance Dilemmas."

Charitable Giving Projected to Increase

Thanks to economic recovery, it is expected that charitable donations will increase in the next two years at a much greater rate than they have in the recent past.

During a recession, one of the industries that suffers most is charity. When people are worried about their own finances or have less income than they used to have, they naturally do not continue to donate money at the same rate as previously.

Consequently, the total amount of money given to charities has barely risen since the financial crisis of 2008.

Donations have only risen an average of 0.5% per year over the last 10 years. However, experts now expect donations to rise at a much higher rate. The projection is that donations will increase 3.6% in 2017 and 3.8% in 2018.

The increase is anticipated due to the strength of the stock market, increasing gross domestic product, rising wages and an overall better economy.

All of this is reported by Financial Advisor in "Donors Predicted To Give More in 2017, 2018."

A better economy and increased giving to charity are overall positives. However, people should remain cautious and investigate any charities before donating.

It is important to make sure that donations are primarily used for the intended purposes instead of going mostly to administrative and fundraising costs. Donors should consult with charity watchdog organizations.

If you are considering making any large donations, you should consult with an estate planning attorney about how to structure the donation to make sure the money goes where you want and to ensure that the donations fit in with your greater estate plans.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Financial Advisor (Jan. 13, 2017) "Donors Predicted To Give More in 2017, 2018."

Corona Beer Founder Floats Hometown

When one of the founders of Corona beer passed away, a story quickly spread that he had given millions in his will to the people in his hometown. While that turned out to be false, he did give much to the town over the years.

In the U.S., many rural small towns are slowly dying as residents grow old and new families do not move in. The same thing is happening in Spain, where many small rural communities have disappeared.

One town is Northern Spain is different than many others.

The small village of Cerezales del Condado averages only 15 residents in the winter and is still going strong. What makes it different is that it has a wealthy native son, Antonino Fernandez, who was one of the founders of the Corona Beer empire.

When Fernandez passed away, a small newspaper in Spain printed that he had left every resident of the village $2 million in his will.

The story was quickly picked up and spread online according to npr in "A Spanish Village Stays Afloat, Thanks to Corona Beer Tycoon."

There was only one problem with the story. It was not true.

Fernandez did not leave any provision in his will to divide his fortune between residents of his native village. However, Fernandez did give millions to the village over the years, despite having moved away to seek his fortune in Mexico 75 years ago.

He established an arts center, rebuilt houses, paved the roads and much more. He even started a foundation to employ disabled people in the area.

Thanks to his generosity, the town is still going strong and recently had the first young family relocate there in a long time.

This goes to show that not everything on the Internet is true. In this case, the details of Fernandez's generosity were wrong, but the fact that he was generous was not.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: npr (December 5, 2016) "A Spanish Village Stays Afloat, Thanks to Corona Beer Tycoon."

Great Time for Charitable Giving

If you are planning to give money to charities during the upcoming holiday season, now is the time to get started with your research and planning.

Giving to charities almost always increases during the holiday season for a couple of reasons. The first reason is the obvious reason: holidays often put people in generous and grateful mood. Another reason is that at year’s end people are looking to lower their income tax burden for the year and charitable deductions are a good way to do that.

Many people wait until the last minute to give to charity, but that can be a mistake. Giving to charities should only be done after research and planning as the Wills, Trusts & Estates Prof Blog points out in "Make the Holiday Season Your Reason for Giving."

For starters, make sure any charity is registered with the IRS. That helps ensure most of the donated money is used for charitable purposes and you will be able to deduct the gift. You can also research charities online to determine whether they have a good reputation and use donations appropriately.

You might consider consulting with an estate planning attorney. It is often a good idea to coordinate your charitable giving with your estate planning.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Wills, Trusts & Estates Prof Blog (Oct. 16, 2016) "Make the Holiday Season Your Reason for Giving."

Gene Wilder's Secret Estate Plan

The details of Gene Wilder's estate have not been made available to the public. It is likely that he left money for charity.

As is the case when most celebrities pass away, the recent death of actor Gene Wilder has sparked interest in his estate plan. However, the public may never know the full details of his estate as it appears he had some form of planning to keep his estate private.

This would mean he had more than a will that would have to be submitted to a public probate court. One thing is known: his estate plan is likely to include charitable donations.

Wealth Management explains in "Gene Wilder's Real-Life Golden Ticket" that Wilder had a deep interest in charitable giving for cancer concerns. This is because his third wife, Gilda Radner, passed away from ovarian cancer that was not diagnosed in time to save her.

After that Wilder worked tirelessly on behalf of cancer-related charities and started one of his own. He also did not have any children, which increases the likelihood he would have left money in his estate for charity.

While we do not know much about Wilder's estate plan, the fact it has not been made public tells us a lot.

That means that, unlike some other celebrities who have recently passed away, Wilder made some sort of plans and did so in a way that would keep his estate private.

If you would like to keep your estate plan out of the public eye, be sure to contact a qualified estate planning attorney.

Please visit my central Florida estate planning website to learn more about estate planning. And while you are there, remember to sign up for my informative e-newsletter to keep you current on issues important to you and your family.

Reference: Wealth Management (Sept. 12, 2016) "Gene Wilder's Real-Life Golden Ticket."