Last week in our Geyer Law blog, Cara Chittenden discussed the fact that estate planning attorneys, CPAs, and financial planners each have a role in helping clients as they prepare to sell a business. It appears, from recent studies, however, that when it comes to helping clients with their charitable planning, the conversations don’t flow quite so smoothly…
“Charitable giving is a substantial force in the United States,” the Columbus Foundation asserts, yet several surveys reveal the majority of advisors are bad at talking to clients about it. According to a 2013 study of the Philanthropic Conversation conducted by the U.S. Trust in partnership with the Philanthropic Initiative, less than half of high net worth individuals felt that professional advisors –wealth advisors, trust and estate attorneys, accountants, and other tax professionals — are good at discussing personal or charitable goals with them. Five years later, another survey by the US. Trust in partnership with the Philanthropic Initiative confirmed that observation.
Where’s the disconnect? Almost half the advisors surveyed believed that reducing tax liability is the primary motivator for charitable giving. A mere 5% of the clients surveyed, on the other hand, indicated they’d stop giving if the estate tax were eliminated. The other factor at play, according to the authors of the book The Right Side of the Table, is that advisors were focused on tools, strategies, and tactics of charitable giving, instead of trying to understand the clients’ goals and values. The real question in charitable estate planning is this — “What would you like to change or preserve in the world?” In other words, as United Charitable tells advisors, “You’ll want to steer your initial conversations about philanthropy towards meaningful topics (your clients’ personal values” rather than on technical topics (tax advantages and estate planning vehicles).”
Having discussed charitable planning with families in central Indiana for more than a quarter century, we at Geyer Law understand the challenges and family dynamics that come into play with legal issues — and perhaps particularly with estate and charitable planning. Not only do we stand ready to answer our clients’ questions, we try hard to be mindful, in formulating our own questions and responses about charitable gifts, of the things that really matter — to them!
– by Ronnie of the Rebecca W. Geyer blog team
