\u201cDo whatever you think is right with it.\u201d That was the instruction David \u201cSandy\u201d Gottesman left for his wife, Dr. Ruth Gottesman, along with a stock portfolio worth billions.<\/p>\n\n\n\n
Initially overwhelmed by her late husband\u2019s bequest, Dr. Gottesman did nothing with her newfound wealth for two years, but at the urging of her children she finally made a decision.<\/p>\n\n\n\n
In 2024, she gifted US$1 billion to the Albert Einstein College of Medicine in the Bronx, New York\u2014an institution she\u2019s been involved with since 1968, first as faculty, then on the board of trustees and currently as chair. The Gottesmans’ gift will cover tuition for all students in perpetuity.<\/p>\n\n\n\n
There is a lot that\u2019s \u201cright\u201d about this story of giving. Indeed, it\u2019s an example of philanthropy doing exactly what it should: contributing to an institution important to the benefactors and the greater community. The United States needs doctors, and free medical school tuition offers significant opportunity while reducing the debt burden on students in the Bronx. It\u2019s a beautiful legacy. Still, it left me thinking about the value of having a strategic giving plan.<\/p>\n\n\n\n
Planned giving<\/a> is exactly what it sounds like: making a plan now for a monetary gift in the future\u2014often, but not always, after death.<\/p>\n\n\n\n A study commissioned by the Will Power campaign <\/a> found the number of Canadians naming a charity in their Will increased from five to eight percent between 2019 and 2022; a jump of 1.2 million people. And, according to a survey conducted by Ipsos for RBC Royal Trust, younger Canadians are more philanthropic when it comes to estate planning<\/a>: among those with a Will, more than half (53 percent) of Canadians ages 18-34, and one quarter of 35-54-year-olds, have requested to include charitable giving compared to just 13 percent of those 55 and older.<\/p>\n\n\n\n There is no question that planned giving has benefits for the recipient charities, including stability of revenue and the ability to plan programming around that revenue. But there are also many advantages to donors, and their families.<\/p>\n\n\n\n Few will inherit the billions Dr. Gottesman did, but trying to identify the final wishes of a loved one can be distressing no matter the size of a bequest. Dr. Gottesman spent two years on this very question. If she had also passed away, the decision would have fallen to their children<\/a>.<\/p>\n\n\n\n When instructions for philanthropic giving are included in a wealth distribution plan, it relieves the inheritors of a significant burden. They don\u2019t have to question what the deceased would have wanted or worry that they got it wrong. They\u2019re free to simply remember their loved one.<\/p>\n\n\n\n It\u2019s worth noting that this is an issue on the rise. Over the coming years there will be one of the largest wealth transfers in history<\/a>, involving trillions of dollars in assets across Canada, the United States and the United Kingdom.<\/p>\n\n\n\n In Canada, women outlive men by a slight margin (the gap between women’s and men’s life expectancies has been narrowing since the 1970s<\/a>), so it\u2019s likely they\u2019ll bear more than their share of the burden. Managing family wealth is an enormous responsibility made even more challenging without clear directions.<\/p>\n\n\n\n A careful, documented plan can also prevent unnecessary discord. Research indicates only around 30 percent of wealth transfers are successful<\/a>, in that once the heirs receive their inheritances, the family maintains harmony along with control over their assets.1<\/sup> For these reasons and more, benefactors should consider preparing their succession plans now. <\/p>\n\n\n\n Planned philanthropic giving is also a pragmatic decision. With strategic preparation, people can identify the best outcomes for their families and the causes they support.<\/p>\n\n\n\n Sometimes, concerns about charitable giving arise from misconceptions. Some worry that their contributions are too modest or that they can\u2019t afford to donate and take care of their family. Understandably, people don\u2019t want to spend their children\u2019s inheritance<\/a>.<\/p>\n\n\n\n Including philanthropic planning strategically as part of a donor\u2019s overall financial and estate plan<\/a> creates opportunities for tax efficiencies, sometimes specifically timed to be most advantageous, that may otherwise be missed. <\/p>\n\n\n\nThe importance of clear instructions<\/strong><\/h2>\n\n\n\n
Making the most of family wealth<\/strong><\/h2>\n\n\n\n
A legacy that will last years<\/strong><\/h2>\n\n\n\n