The Oklahoma Bar Journal November 2024

P robate

Testamentary Charitable Planning: Supporting Your Clients and the Community By Christa Evans Rogers

A S ATTORNEYS, MANY OF US REGARD PRO BONO WORK as the legal profession’s preferred mechanism to give back and satisfy our obligation to render “public interest legal services.” 1 While this is a much-needed and important method for lawyers to support our communities, there are a myriad of ways for us to be part of the fabric of philanthropy and use our specific talents for the public interest. 2 Frontline charitable organizations can not achieve their missions without funding. Attorneys are uniquely positioned to bolster that critical fundraising endeavor within their paid practices by discussing testamentary charitable estate planning with their clients. With proper drafting, attorneys can simultane ously maximize philanthropic impact, advocate for clients, protect heirs’ interests, as well as minimize – or even eliminate – income, gift and estate taxes. This article explores the benefits of helping clients pass along their values with their valuables.

income over time in a controlled manner for their loved ones’ lives or a term of years, with a benefit to charity upon termination of the income interest. Charitable giving can be a critical component of tax-efficient estate planning. 4 Clients look to trusted advisors for guidance when considering their finan cial needs, later-in-life care and estate planning needs. As a part of those considerations, many clients expect attorneys to discuss charitable giving. 5 If we neglect to consider our clients’ philanthropic

Donors have numerous moti vations when considering testa mentary charitable gifts. Many are spurred by preserving a personal legacy or honoring a loved one with a permanent tribute. Others have concerns about asset preser vation during their lifetimes but would gladly make a gift upon their passing when longevity risks or end-of-life care costs are no longer a factor. Some have a heart for giving back and simultaneously a desire to reduce potential estate and income taxes for their heirs. Other clients may seek to distribute

THE ADVISOR’S ROLE IN UNDERSTANDING AND ADVOCATING FOR CLIENTS

WITH TESTAMENTARY CHARITABLE INTENT

For clients with a pattern of giving, charitable estate planning provides an attractive extension of their philanthropic efforts. Often, a testamentary charitable gift is not only a client’s last donation but also their largest. In 2022, Americans gave roughly $499 billion to charity, with 9% (roughly $45 billion) coming from testamen tary charitable gifts. 3

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

40 | NOVEMBER 2024

THE OKLAHOMA BAR JOURNAL