Introduction by Deborah Schachter

Director, Giving New Hampshire

LAWYERS AND OTHER professional advisors can play an enormously important role in encouraging clients to explore their charitable interests, and in offering guidance and technical assistance in this significant area of wealth planning.

The professionally responsible conversation with clients about philanthropy has become just as integral to wealth planning – and life planning – as are matters such as providing for descendents or what degree of control to give a surviving spouse. Often, advisors from different disciplines may team up to advise clients – creating valuable networks for referrals and other professional interaction.

In this issue of Bar News, we share the comments of a few advisors about how and why they make philanthropic advising part of their routine practice.

The following are excerpts from interviews with Joseph McDonald, III, an attor ney with McDonald & Kanyuk,Concord; Paul Semple, an attorney with McSwiney, Semple, Bowers & Wise, Concord; Susan Martore-Baker, a principal with State Street Global Advisors; and Robert Taft, an attorney with Fernald, Taft, Falby & Little, Peterborough.

A: (Joe McDonald) We start it with a questionnaire. On that questionnaire is a section dealing with philanthropy that specifically asks clients the extent to which…they want to support charities…For those who haven’t thought about it, it gets them thinking about it maybe for the first time – and that begins the dialogue about what they can do, and some of the tax benefits of philanthropy.

(Paul Semple) Usually, I review with them their family needs and we consider the question of charitable giving…Generally speaking, they already have in mind what they may want to do – they just may not know how to go about it, so I can provide some guidance.

(Susan Martore-Baker) If it is appropriate from the goals and objectives my clients have related, I recommend or at least mention certain estate-planning strategies that can be highly effective. Those strategies may incorporate charitable planning with charitable remainder trusts, charitable lead trusts, and donor-advised funds, among others.

Q: What barriers do you perceive exist that prevent advisors from asking a client about their charitable interests? How do you overcome these in your own practice?

A: (Paul Semple) I think the barriers are probably more self-imposed than they are barriers from the clients’ perspective. It’s simply a matter of asking the question and not being concerned that you may get an answer that is ‘No.’...Sometimes people just assume that unless the client initiates the [discussion] of a charitable contribution, then the intent is not there.

(Susan Martore-Baker) Charitable trusts can be very technical estate-planning vehicles. Unless an advisor is knowledgeable in sophisticated estate-planning strategies, the advisor may not be comfortable including them in his or her recommendations. However, because the strategies are so beneficial to the client, as well as to society as a whole, in certain circumstances, it is important to investigate charitable intent and incorporate that planning in a client’s overall estate plan.

(Joe McDonald)…You don’t have to do these highfalutin things – whether they be charitable remainder trusts or gift annuities. It could be as simple as an outright gift on death…how complicated is that? You need not become an expert on the sophisticated strategies and all the esoterica to implement charitable solutions for your clients…If somebody wants to be philanthropic, you say, ‘What do you want to do?’ and then you hone in on strategies afterward. It need not be complex.

A lot of times [clients’] eyes aren’t open because the question is never asked in the first instance…For most people, the answer would be ‘Yes,’ but that question is never asked.

A: (Bob Taft) I believe in helping charities and I think I always have…it doesn’t make much difference how much money you have, it’s whether you have a feeling that it’s good to give something back to the community where you live.

(Susan Martore-Baker) If I don’t ask the question, that client’s true intent may never be attained. Estate planning, both lifetime and death planning, has such lasting repercussions, but the craftsman is only as good as his tools. So the more tools I have to meet a clients’ needs and ultimate goals, the better they are served. Charitable planning techniques give me additional tools with which to assist clients.

(Paul Semple) Well, my background is from the 1960s and we all feel a certain commitment toward doing for others what we can, whenever possible. I suppose it’s part of the ongoing feeling of commitment toward society in general.

A: (Paul Semple) Certainly I have had occasions where people say, ‘Gee, I hadn’t thought about that, but now that you raise the issue, it is something that is of significance to me.’ It’s usually a situation where clients haven’t focused on it for one reason or another.

(Susan Martore-Baker) If charitable giving is an important part of a client’s life, they want it to be done as efficiently as possible. The right planning can benefit both the giver and the charity in the most effective manner.

Sometimes, passing a message on to future generations is an important goal my clients have. Charitable planning within an estate plan can let it be known for generations to come that giving charitably was important to the client. It may also provide funds for succeeding generations to give to the charities of their own choosing.

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