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Charitable Planning: 7 People Who Benefit The Most

Over the next 10 years, advisors will help their clients facilitate the largest wealth transfer in the history of our nation's history and charitable planning will become an increasingly larger and more important part of that service.


But it's often the least appreciated - and utilized - tool in most advisors' toolkits.


All parties involved with a planned benefit gift come out on the winning side, so no one should be judgmental or ashamed, according to author and advisor coach Matthew Halloran.


In fact, it can be a great and honorable way to build your business.


Here are the seven people or entities that benefit the most from charitable planning.


Source: Matt Halloran, MS, Director of National Development for GIVE Strategy.

1. The Client (Donor) 1. The Client (Donor)

The client wins in so many ways. They realize they are able to give a meaningful amount to their charity of choice, a feeling they thought only the ultra-wealthy could feel. Besides the "feel-good" aspect of the gift, they can receive income for life from that gift - depending on the vehicle.

2. The Heirs 2. The Heirs

If the gift is put together correctly, the kids are not squeezed out of an inheritance. Using insurance like it was meant to be used to replace wealth (put in the trust) is powerful and allows the kids to feel whole.

3. The Charity 3. The Charity

The charity gets a planned gift that can allow them to focus on their mission. Planned gifts are a much needed source of income for a charity so they can do long-term planning to get closer to realizing their mission.

4. The Accountant 4. The Accountant

Little do people know this is a great tool for accountants to use to deepen the relationship with their client and have new business opportunities generated for their practice. A 5227 form will need to be done every year on that planned gift.

5. The Estate Planning Attorney 5. The Estate Planning Attorney

Well, someone has to write the trust right? Most EPA's don't specialize in this sort of trust, but will welcome the new business because it generally creates more work for them with the client (donor) down the road.

6. The Planned Giving Director/Officer 6. The Planned Giving Director/Officer

This is a tough job. It is a time-intensive and competitive marketplace. Planned giving officers will have the chance to reach their planned giving goals, which allows them to help their charity plan for their mission.

7. The Financial Services Professional 7. The Financial Services Professional

This one is demonized far too often. No one minds that the accountant might make $20,000 over the life of the planned gift, or the estate planning attorney might make $5,000. But an advisor making money? For some reason that seems to put people off.


If anyone realized how much work it is to do a planned gift from a charitable planning stand point, they would not balk at the advisor making a $10,000 for three to sixth months of work.


Over the next 10 years there will be the largest wealth transfer in the history of our country's history. Empower your clients to take the power out of the government's hands and give the money to people/organizations/charities they want to help.


Also see:

8 Issues Weighing On Affluent Investors' Minds Right Now
The Art of Conversation: 8 Tips for Successful Advisors

5 Ways to Better Manage Clients? Risk Tolerance, Expectations

9 Ways to Keep Clients From Overspending in Retirement

Over the next 10 years, advisors will help their clients facilitate the largest wealth transfer in the history of our nation's history and charitable planning will become an increasingly larger and more important part of that service.

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