Life Stage Planning

A wise philanthropist is someone who gives the right asset, in the right way, at the right time, for the right purpose. The following life-stage planning is offered as a resource to assist you in choosing appropriate charitable vehicles for different stages of life.

Under Age 50

The years between ages 18 and 50 are the center of life when we complete our formal education, launch a career, marry, have children, purchase a home, and probably assume maximum financial responsibility. Beginning in our 30s, we are also likely to become more involved in the community and begin to serve on boards. Appropriate gifts might be:

• Annual gifts of cash or securities, generally of modest amounts.
• A major gift, if financial success is achieved early in life.
• Naming ASHRAE Foundation as owner or beneficiary of a life insurance policy. (At this age, premiums are usually inexpensive.)
• Naming the ASHRAE Foundation as a contingent beneficiary in a will, in the event primary beneficiaries are not living.

Age 50–60

During this decade educational expenses for children will likely have come to an end, but some elderly parents may require a financial subsidy. These tend to be the years of peak earnings and the time for significantly increasing our estate. It’s also the time when we achieve recognition in our profession, and assume leadership roles in community organization. Appropriate gifts might be:

• Annual gifts of cash or securities.
• Major outright gift of cash, securities, or business interests, possibly in connection with a capital campaign.
• Deferred-payment gift annuity or a charitable remainder unitrust as a supplemental retirement plan.
• Immediate gift annuity to provide for an elderly parent.
• Inclusion of ASHRAE Foundation as a beneficiary in a will or living trust.

Age 60–75

Most of us will retire during this period, and retirement planning will start intensifying at about age 60. This is also the time when people are most likely to develop a comprehensive estate plan, and for those who own their own business, a succession plan. Some grandparents, who are able, will be subsidizing grandchildren’s college education. Withdrawals from a regular IRA and certain other retirement plans must begin no later than age 70 ½. Appropriate gifts might be:

• Annual gifts of cash or securities.
• Major outright gifts, depending on whether sufficient assets would remain for retirement security.
• Gift annuity or a charitable remainder trust to increase retirement income.
• Inclusion of the ASHRAE Foundation as beneficiary in a will or living trust.
• Naming the ASHRAE Foundation as beneficiary of an IRA or other retirement plan.
• Current gift of IRA assets pursuant to IRA rollover legislation, if over age 70 ½.

Age 76 or older

Usually, though not always, the accumulation period will have ended, and investment/retirement assets will be gradually depleted. Selling the family home and moving to a retirement home often occurs during this period. Providing for long-term care, if needed, also becomes a concern. The will and other estate planning documents will be reviewed and changed as necessary. Appropriate gifts might include:

• Gift annuity or charitable remainder annuity trust to increase retirement income. (The trust could be funded with a residence.)
• Inclusion of the ASHRAE Foundation as a beneficiary in a will or living trust, if not previously done.
• Gift of a residence subject to life usage—suitable for those who want to continue living in their home.
• Name ASHRAE Foundation as a beneficiary of an IRA or other retirement plan.

Most of these gift vehicles result in tax savings, which will be explained in detail upon the request for information about planning for a stage of life. Hopefully, the opportunities we have listed will be helpful as you do your own philanthropic planning.