Estate planning has complicated connotations since it’s such a broad concept. I often tell my clients that when they pass away, their estate can go to one of three places: the federal government in the form of taxes, their family and loved ones, or their favorite charitable organization. Estate planning is simply deciding how you want to divide what you’ve worked for. Many people prefer to see at least a portion or even the entirety of their estate go to a charitable organization they care about — such as the Texas A&M Foundation — rather than leaving it to the federal government to decide how it’s used or unintentionally imposing income or inheritance tax obligations on their families.
Yes, estate planning is recommended for everyone, regardless of financial status. Planning allows you to make intentional decisions about what happens to your assets, family and charitable priorities. When people begin thinking about estate planning, and estate gifts specifically, it’s usually influenced by a combination of factors that naturally work together. There’s often a desire to ensure their assets are used in a meaningful way and an awareness of the financial and tax considerations that come with transferring those assets.
I’ve found that Aggies tend to bring a strong sense of loyalty and heart to these decisions, whether they’re making a lifetime gift or choosing to include the Foundation in their will. That emotional connection works hand in hand with the practical aspects of estate planning. Once individuals understand their own motivations — whether they center on impact on the institution or students, estate or income tax planning, gratitude or all of the above — that clarity typically becomes the first step in the process.
It usually begins with understanding what you already have and how it’s set up. I first tell clients to review their financial accounts and beneficiary designations, because those determine where certain assets go. From there, it’s important to take a fresh look at your core documents — your will or living trust — to ensure they still reflect your intentions. Those documents should be reviewed every year or two.
Many people also begin the process with questions about how certain tools work or how assets move through the probate system. There’s often confusion about what a living trust accomplishes or how probate functions in Texas, because people receive information from a variety of sources. That’s why it’s important to talk with someone familiar with the legal landscape who can explain how these pieces fit together.
Thoughtful estate planning can present opportunities to minimize taxes. For instance, clients with larger estates may incorporate charitable giving into their plan to significantly reduce the income or estate tax burden on their heirs. Directing tax-deferred assets like IRAs or 401(k)s to charity is also extremely efficient because a charity receives the full amount tax-free, while heirs would owe income tax and ultimately receive much less.
There are meaningful lifetime benefits too. If someone is taking required minimum distributions, they can use a qualified charitable distribution to send that money directly to charity without paying tax on it or increasing their taxable income. Cash gifts may provide deductions depending on the individual’s situation, and tools like charitable remainder trusts allow clients to avoid capital gains taxes on highly appreciated assets while still receiving lifetime income and a current-year deduction. All these strategies can give you extra bang for your buck when you make a gift.
When my Aggie clients express interest in making the Foundation a beneficiary of their estate, I connect them with the Foundation’s charitable gift planning team. My responsibility is to understand the legal landscape — drafting the documents, ensuring compliance with tax and estate laws, and making sure their intentions are carried out accurately. But the Foundation plays an equally important role in the process.
Their team includes qualified attorneys and professionals who can review the documents I prepare, confirm that everything aligns with the client’s charitable goals and explain in detail how their gift will be used to support Texas A&M. They help clients understand the various giving opportunities, such as endowments and scholarships, and how those funds will create a meaningful impact on campus. Once the Foundation walks them through these options and the client confirms their intentions, we work together to finalize the legal tools that make their planned gift a reality.
