1902 Heritage Society Planned Giving Minute: Essential Elements of Estate Planning

Mr. Rhett Zeigler, J.D., is a graduate of the Benedictine Military School Class of 1994 and the Executive Vice President & Chief Trust Officer at Magnolia Trust Company. He has graciously agreed to write about estate planning, which is important to Benedictine Military School. BC’s 1902 Heritage Society recognizes individuals and families who have included Benedictine in their estate plans or have named Benedictine as the beneficiary of a charitable gift arrangement.

 

By Mr. Rhett Zeigler

 

Establishing a well thought out and comprehensive estate plan is essential to addressing important financial and personal issues that arise at one’s incapacity or death, including to whom and in what manner assets are to be distributed, who can assist with financial and health care decisions during life, the nomination of guardians of minor children, gifts to charity, business succession and, in some cases, opportunities to minimize taxes. Working with a qualified attorney to create a well-developed plan can provide a roadmap to help loved ones navigate these issues with peace of mind.

 

In its most recent annual Wills and Estate Planning survey, Caring.com found that only 24% of Americans have a will, down from 33% in 2022. This is surprising, as in the absence of a will, assets will pass under the state’s laws of intestacy, which may or may not achieve an individual’s desired outcome.

 

Below are some common parts of an estate plan, and a brief description of each.

 

A Last Will and Testament controls the disposition of assets included in a person’s probate estate. A will determines who receives assets and how (i.e. outright or in trust). Here, one can also designate a personal representative of the estate, name a trustee for any trusts being created, and nominate individuals to be the guardian of any minor children.

 

A Financial Power of Attorney is a document that allows one to name an agent to help handle financial affairs during life. Powers granted in a Financial Power of Attorney can be broad based or limited and can be revoked at any time. A Financial Power of Attorney terminates no later than the death of the person who created it. Among other things, these documents can be helpful in managing the payment of daily expenses and banking matters.

 

In Georgia, the Advance Directive for Healthcare addresses three primary areas - naming a health care agent, treatment preferences and guardianship provisions. It is recommended that a copy of this document be given to those who might need it, including family and your physician.

 

In addition, when creating an estate plan, familiarizing oneself with the additional considerations below will help ensure the desired outcome and avoid any unintended consequences.

 

As described above, probate assets pass according to the terms of one’s will and include assets such as real estate or bank and brokerage accounts owned solely by the person creating the will. Non-probate assets are those which pass by operation of law or by contract, such as certain jointly owned property, retirement account assets and life insurance. This distinction is significant in understanding which assets will pass according to the terms of one’s will and those that will pass directly to a beneficiary regardless of the terms of the will.

 

As part of the estate planning process, a review of asset titling should be undertaken to ensure that the distribution of assets upon one’s death will be consistent with the intent of the person who is creating the plan.

 

Beneficiary designation forms for assets such as retirement accounts, annuities and life insurance policies should be reviewed to ensure these assets will pass in the intended manner.

 

As part of the estate planning process, charitable contributions to match donor intent should also be explored.  These strategies may create current income tax deductions or tax deferral opportunities, depending on one’s goals.  Charitable giving opportunities may include:

In summary, working with an attorney to develop an estate plan can ensure your goals are met while protecting loved ones. Once a plan is in place, periodic updates and tweaks can be made as major life events occur, ensuring peace of mind and avoiding unnecessary complications if and when unforeseen or unexpected events occur.

 

CLICK HERE to learn more about Mr. Zeigler and be sure to reach out to your estate attorney, accountant and/or financial advisor to discuss your estate plan.

If you are interested in including Benedictine Military School, please contact Benedictine Chief Advancement Officer Mr. Tim Nelson at (912) 644-7016 or tim.nelson@bcsav.net.

Learn more about Benedictine’s Planned Giving program https://www.thebc400.com/support-bc/planned-giving
and the 1902 Heritage Society https://www.thebc400.com/planned-giving-stories