Our family continues a tradition during Thanksgiving weekend that was started when our kids were young. We all write Santa “wishlists”. We told the girls that they could put whatever they wanted on the list and Santa might choose one thing on the list to bring as a present on Christmas Eve. In our family Santa was dwarfed by the other “visitors” of the season during the 12 days of Christmas....angels, shepherds, wise men and others. Our kids had simple wishes on their Santa lists - cute fuzzy socks, books, new art pens and other small toys. We didn’t watch television so the kids did not have constant ads to “help” them want lots of stuff.
These days, our adult family lists can include a lot crazy things. One year someone wrote down World Peace, and he got a bowl of Whirled Peas. Another year someone wrote down "help in the garden" and she got a bag full of dirt (and some help). Sometimes we all have trouble thinking of things to put on our list because, well, we already have enough.
The fun of Christmas is the magic of finding just the right gift for someone and seeing their face light up. Or seeing surprises lurking inside beautiful packages. It is a real talent to find just the right gift for someone. It also takes gracious acceptance of gifts we did not expect or particularly want. Every so often, we hit the sweet spot and remember the giving moment or person for years to come, even if the item becomes tarnished with age. The best gifts include three elements: involvement; shared memories; and, attention to what is important to the receiver.
Since this is the giving season, we've started December with some ideas to help spur your thinking about giving with Legacy Planning in mind. Some are simple treasures passed on with a flair; others are designed to build into your children the joy of giving to others; and some are just practical tips on gifting that can help your estate grow or further a beloved cause.
1) Alternative gift giving is a great way to involve the whole family. Many churches and synagogues sponsor gift events. Here is a simple way to have fun, teach kids about responsible giving and build in some magic into giving. Each person in the family researches a charity. They can wrap a “gift”, make a power point presentation, make a small ornament, draw a picture, or sing a song to explain why they want to help this organization. Then the family chooses a charity from those presented. Based upon their budgeted amount of giving for the year, they might decide to give some to each charity or only one. The rule is both time and money needs to be devoted to the charity. Next year, the member who suggested the charity can give a short report on it and whether they think it is worth supporting again This one little addition to holiday giving can teach your children a lot about giving. A good resource to use in researching charities is http://www.charitynavigator.org/ This site evaluates charities' stewardship of their resources. It does not evaluate religious organizations that are exempt from filing the Form 990 (like the Salvation Army or your local church), but there is a wealth of information on many good causes.
2) Begin to gather some special mementos; small knick knacks; jewelry or small items you no longer need, but that hold a special memory to you and possibly others. Think of who in your family or circle of friends might like the item to remember you with. Write a short story, note or other simple memory to explain the item. Wrap it up; tie it with a bow; label the item and then put it in a special memory box. Be sure to put your memory box somewhere that can be found later and write it down in your estate planning documents. You can either give these as a birthday gift or just keep adding gifts to the box as you think of it. This could be your final surprise gift to others.
3) Gifts can help you avoid paying some types of taxes. Gifts to charities are income tax deductions in the year you make the gift. This is established social policy to insure that our society continues to retain the social benefits of services provided by non-profit organizations. Gifts to friends or family members in 2011 and 2012 can be up to $13,000 per person ($26,000 if you are married) or unlimited if for education, without incurring a gift tax. Gifts to family and friends do not reduce your taxes, but exceeding the annual gift limits will reduce your total excludable amount which could lead to your estate paying more in taxes. This year the total lifetime gift amount was raised by congress to $5,000,000.
4) Non-cash gifts to charities are also a good way to promote re-use and provide a way to move personal assets on to organizations that can use the resources which you can no longer use. If this amounts to more than $500 in any year, your tax professional will want to see a completed IRS form 8853 which lists items, values and has the signature from the charitable organization.
5) Larger gifts can be used as part of an overall estate planning strategy to lower estate taxes and increase the size of the estate you leave behind. Ask your attorney whether you might benefit from a Crummy Trust, a Charitable Lead or Charitable Remainder Trust. These can be useful tools to insure income for yourself while providing a gift to a worthy cause after you pass away. Your attorney can help you determine if these types of techniques would help your estate pay less in estate taxes and leave a legacy to a beloved cause. Hint: remember to consider naming a professional fiduciary for complex trust arrangements to reduce the risk of IRS reclaiming gifted assets into your carefully constructed charitable trust and gift trusts.
Enjoy the season!!
Thursday, December 1, 2011
Sunday, November 20, 2011
My Future Garden
The garden called out today. It is unborn, unformed, but still it called. So I answered by starting on the garden wall. Stone by stone; digging, leveling, and laying out a pattern for my future garden. While I work, I think about legacies and a vineyard we visited just as the harvest came nipping in.
The rush to gather all the grapes into bins had just ended. The glee at getting it all in before the rains came was like fireflies in June. I think of the physical labor of a vineyard as my back is aching, my arms are weak and, I sweat over a few stones laid. I also think about Isabelle Simi, whose legacy as one of California's first women vitners, is celebrated in a recent article by Jessica Yadegaran published by the Bay Area News Group: Sometimes the ordinary becomes extraordinary with the mystical mix of time, light, and good old fashioned sweat.
Kevin, the vintner at Proulx vineyards, sparkles and resonates with a comment he made over dinner. He said, “I’m in this for the long haul. Fifty years is not too long of a time horizon for me. I build slowly and carefully.”
The family is already building a legacy at Proulx vineyards where four generations work, live and play. Each contributes what they have to the business. The artist builds in beauty. The great-grand parents gather everyone in. Another family member renovates the old 1887 farmhouse to give it honor. All offer gracious hospitality to wine tasters and vineyard visitors wandering into the valley. This valley is not East of Eden. Rather, it is East of Camelot (or Hearst Castle) in the Central Coast vineyard area of California. Each family member has a part of their own dream wrapped inside this bigger legacy.
Now the dilapidated farm they bought before El Niño years is strikingly wonderful. It’s not just the wines they make, although the Zinfandel and Merveille are beautiful. It’s something intangible, but crucial. They have woven camaraderie into their family business. You can almost taste it in the wine they sell and feel it in the family style bunkhouse bed & breakfast they run. It’s a great place to see a legacy being built, slowly and carefully. Take a walk in the clouds, gaze at the rust and orange vineyard hills, sip the harvest delivered from old and new vines and ponder the cooperation it takes to build this legacy.
I have no illusions that my garden wall will still be around in 50 years. I do have a hope though that in 50 years more people will grow their own vegetables or buy from local farms. I hope that in 50 years we will have figured out how to re-cycle, re-use, or renovate everything instead of sending our leftovers to muck up the oceans.
So, I work on my future garden like a legacy, stone by stone, and think how to move my vision of the future closer to reality. Is this how Nehemiah felt? In the meantime, the last bit of sun on a tawny fall afternoon is enough blessing for today. For tomorrow, which Proulx wine goes with Thanksgiving dinner?.
The rush to gather all the grapes into bins had just ended. The glee at getting it all in before the rains came was like fireflies in June. I think of the physical labor of a vineyard as my back is aching, my arms are weak and, I sweat over a few stones laid. I also think about Isabelle Simi, whose legacy as one of California's first women vitners, is celebrated in a recent article by Jessica Yadegaran published by the Bay Area News Group: Sometimes the ordinary becomes extraordinary with the mystical mix of time, light, and good old fashioned sweat.
Kevin, the vintner at Proulx vineyards, sparkles and resonates with a comment he made over dinner. He said, “I’m in this for the long haul. Fifty years is not too long of a time horizon for me. I build slowly and carefully.”
The family is already building a legacy at Proulx vineyards where four generations work, live and play. Each contributes what they have to the business. The artist builds in beauty. The great-grand parents gather everyone in. Another family member renovates the old 1887 farmhouse to give it honor. All offer gracious hospitality to wine tasters and vineyard visitors wandering into the valley. This valley is not East of Eden. Rather, it is East of Camelot (or Hearst Castle) in the Central Coast vineyard area of California. Each family member has a part of their own dream wrapped inside this bigger legacy.
Now the dilapidated farm they bought before El Niño years is strikingly wonderful. It’s not just the wines they make, although the Zinfandel and Merveille are beautiful. It’s something intangible, but crucial. They have woven camaraderie into their family business. You can almost taste it in the wine they sell and feel it in the family style bunkhouse bed & breakfast they run. It’s a great place to see a legacy being built, slowly and carefully. Take a walk in the clouds, gaze at the rust and orange vineyard hills, sip the harvest delivered from old and new vines and ponder the cooperation it takes to build this legacy.
I have no illusions that my garden wall will still be around in 50 years. I do have a hope though that in 50 years more people will grow their own vegetables or buy from local farms. I hope that in 50 years we will have figured out how to re-cycle, re-use, or renovate everything instead of sending our leftovers to muck up the oceans.
So, I work on my future garden like a legacy, stone by stone, and think how to move my vision of the future closer to reality. Is this how Nehemiah felt? In the meantime, the last bit of sun on a tawny fall afternoon is enough blessing for today. For tomorrow, which Proulx wine goes with Thanksgiving dinner?.
Monday, November 14, 2011
Running With Sisters-Teamwork With A Smile
Kitty is the one in Zumba class who always knows the moves. You know the one. I follow her lead because I never know the moves. And she is always smiling. Even when she pulled a tendon, she kept on smiling, really! We chatted recently over a glass of wine and she enthusiastically told me about the business she and her sister have built together. Her description of their working relationship prompted me to ask if they would share about building their business together. Kitty and her sister Jennifer jointly write books and articles for major magazines describing fun and easy craft projects for the whole family, using found “treasures”.
In the spirit of using our own “treasures” to design a legacy or create a memory, they offered some ideas for family time during Thanksgiving weekend. You’ll find their story and a couple of their suggestions below. You can also find out more about their fun ideas at the blog www.RunningWithSisters.com It should keep you smiling during the family gatherings ahead.
Loren: I love the name of your business - Running With Sisters. How did you decide to start a business together?
Kitty: We didn't really plan on starting a business together. But we had an idea for a book. It was when Feng Shui was really popular and we are both big time collectors. People would joke that our Chi was going to get lost in our houses because we have too much stuff. We thought of a book that celebrates your stuff instead of trying to get rid of it. Funky Shui! We met an agent, sent her the proposal, and she got us a book deal! We had so much fun writing the book together, we decided to keep it going!
Loren: Describe how you work together on a regular basis. Some families might like to pick up a few pointers on how to work with each other and avoid pulling out the sharp instruments.
Jennifer: We work every day, Monday through Friday 9am to 5pm. When you are self-employed, time can get away from you so the schedule helps to make it concrete. Also, when you depend on someone else to work with, you need to have a fixed and reliable schedule. We take our business very seriously and this schedule sets that tone for both of us. We either write and do tasks over the phone or get together to do photoshoots and crafts. We have a "to do" list we work from, so we know each day what's on the agenda.
Kitty: As for getting along, we are both pretty equally matched in how serious we want to take our business, how many hours we want to work, and where we want to take the business from here. Having that shared vision is critical.
Jennifer: Day to day, we are kind to each other, give each other the benefit of the doubt, and do whatever we each need to do to keep from ruffling the other's feathers. We love each other, so we err on the side of being extra nice. Plus it's more fun to work together when you're nice to each other!
Loren: Do you have other siblings and what did your family do when you were younger to foster such great camaraderie and cooperation?
Jennifer & Kitty: We always got along well. When Kitty got her own room after our older brothers moved out, Jennifer came over and spent the night almost every night.
Loren: O.k., here’s my curve ball question. If you could see the world a better place in 50 years, what would you like to pass on to your family and friends that would keep that vision alive?
Kitty: We laughed when we read this question. We feel lucky to work in an arena of pure leisure and enjoyment like crafts. We want our articles to make the world a little bit nicer and a little more fun place. If everyone had the goal to make what they touch a little better, a little nicer, a little more wonderful…wouldn't that add up?
Loren: Definitely! In retrospect, what would you have done a bit differently in starting or growing your business together?
Jennifer: We both agree we are terrible risk takers. We should have taken bigger risks sooner and we still are not big risk takers! It's hard!
Loren: Thank-you for taking a risk and sharing your thoughts with us. Thanksgiving seems like great opportunity to create some fun family memories. Do you have a simple and fun project our family could do over Thanksgiving weekend?
Kitty: The Thankstionary and the Thank You Cards would be super fun for parents and kids to do together.
http://www.oneilsisters.com/kidcrafts/Thankstionary.html
http://www.oneilsisters.com/Thanksgiving/ThankYouCards.html
Post a comment on how the project worked or ideas for other family businesses.
Thursday, November 10, 2011
What Is A Legacy Anyway?
Legacy: “An inheritance or a heritage. Synonyms include a bequest, birthright, devise, endowment, estate, gift, heirloom, throwback, tradition”.
A legacy is more than money; more than memories; and, more than good DNA or a few good deeds. It takes some forethought, or at least a passion applied, to leave a good legacy for the next generation. For those of us who are not wealthy, a legacy might not be something we think about. Or if we do think about it, we don’t really like to talk about it. Isn’t it the thing Presidents start talking about the day they enter office. That’s what the very wealthy talk to their attorneys about, right?
Actually, it’s something even those of us who just want to pay our bills and stay in our homes might find ourselves thinking about. As we hear of a friend’s illness or we deal with a loved one’s passing, we might find ourselves thinking about it more than ever. At some point, there’s a pull to consider how we might impact, plan or even “design” a legacy:
Now ... while we can set in motion something that will touch lives beyond our own.
Now ... before we are immersed in the 5th Chapter of our life.
Now ... while we have resources, energy, talents and time to make a difference.
Now ... because the dollar amount of our resources are less important than our reach and vision.
A legacy reaches farther when we share with a team. The team can be other professionals, charities, like-minded people, employees, or a family business. Inside each of us is a desire to feel that our life has mattered to others. While we consider what it means to develop a vision that extends beyond our own lives, you’ll find occasional posts here about charities, foundations, people and family businesses who offer small examples of building a legacy of value for the next generation.
For some people a family business is the ideal way to build a legacy because by it’s very nature, a business requires us to pay attention to others’ needs and values. A family business often has built into it the value of helping family members or designing work around raising children. Sometimes, we build a business to pass on to the next generation.
Often, passing the torch to the next generation is not easy. There are tools to help. We’ll touch on some of the tools in this blog occasionally. For now, here is a teaser statistic: 70% of estate wealth transfers fail. Or, another way to view this statistic is the Chinese saying, “Wealth never survives three generations.”
The steps wealthy families take to successfully transfer wealth to the next generation goes way beyond hiring an attorney. They begin with thinking about ways to build and pass on a legacy of values. They think about how to share value; show value; build in value; and, encourage value. They also take a realistic look at family dynamics - the abilities, shared values, interests, communication, trust level and willingness to deal fairly within the family.
Designing a legacy is not just for the wealthy. It is for anyone that wants to touch the future. Find a vision you can embrace. Share your time, talent, and treasures in a focused area that offers the real currency of hope, even if you won’t be here in fifty years to see it.
A legacy is more than money; more than memories; and, more than good DNA or a few good deeds. It takes some forethought, or at least a passion applied, to leave a good legacy for the next generation. For those of us who are not wealthy, a legacy might not be something we think about. Or if we do think about it, we don’t really like to talk about it. Isn’t it the thing Presidents start talking about the day they enter office. That’s what the very wealthy talk to their attorneys about, right?
Actually, it’s something even those of us who just want to pay our bills and stay in our homes might find ourselves thinking about. As we hear of a friend’s illness or we deal with a loved one’s passing, we might find ourselves thinking about it more than ever. At some point, there’s a pull to consider how we might impact, plan or even “design” a legacy:
Now ... while we can set in motion something that will touch lives beyond our own.
Now ... before we are immersed in the 5th Chapter of our life.
Now ... while we have resources, energy, talents and time to make a difference.
Now ... because the dollar amount of our resources are less important than our reach and vision.
A legacy reaches farther when we share with a team. The team can be other professionals, charities, like-minded people, employees, or a family business. Inside each of us is a desire to feel that our life has mattered to others. While we consider what it means to develop a vision that extends beyond our own lives, you’ll find occasional posts here about charities, foundations, people and family businesses who offer small examples of building a legacy of value for the next generation.
For some people a family business is the ideal way to build a legacy because by it’s very nature, a business requires us to pay attention to others’ needs and values. A family business often has built into it the value of helping family members or designing work around raising children. Sometimes, we build a business to pass on to the next generation.
Often, passing the torch to the next generation is not easy. There are tools to help. We’ll touch on some of the tools in this blog occasionally. For now, here is a teaser statistic: 70% of estate wealth transfers fail. Or, another way to view this statistic is the Chinese saying, “Wealth never survives three generations.”
The steps wealthy families take to successfully transfer wealth to the next generation goes way beyond hiring an attorney. They begin with thinking about ways to build and pass on a legacy of values. They think about how to share value; show value; build in value; and, encourage value. They also take a realistic look at family dynamics - the abilities, shared values, interests, communication, trust level and willingness to deal fairly within the family.
Designing a legacy is not just for the wealthy. It is for anyone that wants to touch the future. Find a vision you can embrace. Share your time, talent, and treasures in a focused area that offers the real currency of hope, even if you won’t be here in fifty years to see it.
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