Your legacy represents more than just financial assets—it embodies your values, beliefs, and the impact you wish to have on future generations. All donors have a unique philanthropic story they have worked to build, and many want their impact to carry on beyond their lifetime. By incorporating philanthropy into your estate plan, you ensure that your legacy of generosity will live on.
Our approach to legacy giving can integrate seamlessly into your existing arrangements, allowing you to potentially maximize charitable giving tax deductions and other tax benefits, while also supporting the causes you care about most. Whether you’re just beginning to explore your legacy planning options or are looking to enhance existing plans, our team of dedicated philanthropic advisors is here to guide you through every step of the process.
Is planned giving the same as legacy giving?
While often used interchangeably, planned giving and legacy giving have subtle but important distinctions.
- Legacy giving specifically focuses on charitable contributions made through estate plans that continue your philanthropic vision after your lifetime.
- Planned giving encompasses a broader range of structured charitable donations, including current and future gifts that require financial planning.
Charitable giving and legacy planning go hand-in-hand, specifically addressing how your charitable intentions will be carried forward beyond your lifetime. Your goal should be to create a framework that ensures your philanthropic values and priorities will continue to make an impact for generations to come.
Legacy giving can therefore include all strategically structured charitable contributions that are integrated into your overarching financial and tax strategies, including options like starting a scholarship or establishing a field of interest fund. The major difference between legacy and planned giving is the scope of your goals for that structured, long-term giving.
What is the difference between estate planning and legacy planning?
Estate planning and legacy planning serve complementary yet distinct purposes in your overall financial strategy. Estate planning primarily focuses on the practical and legal aspects of managing and distributing your assets. It includes creating wills, establishing trusts, minimizing taxes, and ensuring your financial affairs are in order.
Legacy planning, on the other hand, centers on the lasting impact you wish to leave on your family, community, and the causes you value. It’s more concerned with preserving and transmitting your core beliefs, values, and philanthropic vision to future generations. While estate planning addresses what happens to your assets, legacy planning focuses on why and how those assets can continue to make a meaningful difference aligned with your values.
Legacy planning vs estate planning
While estate planning creates a solid foundation for your legacy planning, both can be thought of as the top of the charitable giving financial planning pyramid.
| Focus | Timeframe | Purpose | |
| Legacy planning | Emphasizes your long-term impact and the continuation of your values. | Looks further into the future, considering how your influence and values will endure across generations. | Aims to establish a meaningful, values-driven impact that reflects your life’s work and beliefs. |
| Estate planning | Concentrates on managing and distributing assets efficiently. | Typically addresses immediate concerns and the period immediately following your lifetime. | Primary purpose is providing financial security, minimizing taxes, and avoiding legal complications. |
Legacy planning and estate planning work best when integrated. A well-structured estate plan provides the foundation that makes your legacy aspirations possible, while thoughtful legacy planning gives deeper purpose and direction to your estate planning decisions. Ideally, both approaches will work together to maximize your charitable impact while potentially reducing your overall tax burden.
What defines a legacy plan?
A solid legacy plan should be defined by several central elements that work together to safeguard your philanthropic vision beyond your lifetime.
- Clear expression of values and goals: Articulating what matters most to you and the difference you want to make in the world.
- Strategic charitable vehicles: Selecting the appropriate giving mechanisms, like DAFs, charitable trusts, or direct bequests, that align with your philanthropic and financial objectives.
- Integration with financial and estate plans: Ensuring your charitable intentions work harmoniously with your broader wealth management and distribution strategies.
- Family engagement: Involving family members in the planning process to foster shared values and create opportunities for multi-generational philanthropy.
- Flexibility for future adaptation: Building in appropriate mechanisms to respond to changing circumstances, emerging needs, and evolving charitable interests.
- Documentation of donor intent: Recording your philanthropic wishes (e.g., through letters of intent, fund agreements, or trust documentation) to guide future giving decisions and ensure your values are honored.
A well-defined legacy plan reflects both who you are and the impact you wish to have, providing a roadmap for how your philanthropic vision will be realized over time. Whether you’re considering starting a private foundation, establishing a donor advised fund at the Foundation, or doing both, your plan should consider and incorporate all available opportunities to maximize your impact.
How does the planning process work at Greater Houston Community Foundation?
Creating a meaningful legacy plan involves a lot of thought and rigorous structuring that balances your philanthropic aspirations with practical financial considerations.
- Assessment and reflection. Begin by examining your values, charitable interests, and the impact you hope to achieve. Consider which causes or organizations have made a difference in your life and the issues you feel most passionate about addressing. Need help defining your values or philanthropic focus? Our philanthropic advisors can help.
- Financial analysis. Work with trusted professional advisors to evaluate your assets, financial needs, and potential tax implications. This helps determine what resources are available for charitable giving while ensuring your personal and family needs are met. Did you know that the Foundation offers donors with $500,000 in a donor advised fund or more the option to work with a preferred third-party investment advisor?
- Vehicle selection. Explore a number of charitable giving vehicles to identify which options best align with your goals and financial situation.
- Documentation and implementation. Formalize your plans through appropriate legal documents, beneficiary designations, and charitable fund agreements. This step ensures your intentions are clearly recorded and legally enforceable.
- Family communication. Share your philanthropic vision with family members, engaging them in discussions about values and charitable priorities. This helps create a shared understanding and potential involvement in your legacy. The Foundation can help you facilitate a family meeting, if needed.
- Regular review and refinement. Periodically revisit your legacy plan with your philanthropic advisor at the Foundation to ensure it remains aligned with your evolving interests, family circumstances, and philanthropic priorities.
Throughout this process, Greater Houston Community Foundation works in coordination with your estate attorney, CPA, and other professional advisors to help translate your philanthropic vision into concrete, effective giving strategies that maximize both your impact and tax advantages.
Legacy planning checklist
As you develop your legacy plan, consult this practical checklist to help ensure that you’ve addressed some key components:
- Clarify your philanthropic values and the impact you wish to make
- Identify specific causes, organizations, or community needs you want to support
- Assess your financial resources and determine what assets might be designated for charitable purposes
- Explore different charitable vehicles and their respective benefits, such as DAFs or starting a scholarship
- Consult with your professional advisors about the most advantageous tax strategies for giving
- Consider the involvement of family members in your philanthropic legacy
- Document your charitable intentions, including specific organizations or causes
- Establish appropriate successor arrangements for any charitable funds or foundations
- Integrate your legacy planning with your will, trusts, and beneficiary designations
- Create a timeline for the implementation of your giving plans
- Schedule regular reviews to update your legacy plan as circumstances change (or new opportunities arise)
Any legacy planning checklist is only as good as the professional advisors executing it. If you and your team need a partner to connect your financial planning with your vision for the future, the Foundation is here to help.
Connect your philanthropic and financial advisors
The most effective legacy plans result from collaboration between your philanthropic advisors and your existing financial and legal team. By connecting these professionals, you can enhance both your charitable impact and your overall financial strategy.
When the philanthropic advisors at Greater Houston Community Foundation work in concert with your existing advisors, they can:
- Identify the most advantageous assets for charitable giving
- Time contributions strategically to maximize tax benefits
- Integrate your intentions seamlessly with your estate planning
- Help evaluate the impact of various giving scenarios on your overall financial picture
- Provide specialized knowledge about community needs and effective giving strategies
- Facilitate family conversations about philanthropic values and succession planning
This collaboration can ensure that your philanthropic vision and financial objectives work together, creating a legacy plan that is both meaningful and financially sound.
Greater Houston Community Foundation, your legacy planning partners
At Greater Houston Community Foundation, we bring decades of experience in helping donors create meaningful, impactful legacy plans. As your partner in legacy planning, the Foundation offers deep community knowledge, philanthropic expertise, flexible giving options, and all the administrative support you need.
Partner with Greater Houston Community Foundation to transform your philanthropic vision into a lasting legacy that reflects your values and creates meaningful change for generations to come. Call us at 713-333-2210 or reach out directly to begin planning your legacy.
