by Jonathan A. Nelson
As Leesburg, Virginia, prepares for Flower and Garden Week, and its 35th annual Flower & Garden Festival this weekend, it got me thinking about those projects we love and would enjoy handing down, such as putting in a special garden.
What can you do to preserve a hobby or ideal beyond your lifetime? A few ideas and options are below, with examples in the garden theme.
1. Specific gifts: If someone shares your enthusiasm for a hobby, a simple way of seeing it continue is just to put it in that person’s hands. This is easier to do with tangible items than real property, but a specific gift in a will might include, “To my nephew Sylvester, I leave my garden tools and seeds.”
2. Manage over time with a trust: Placing conditions in a trust providing for the activity to be maintained (“The Trustee is directed to maintain my Heirloom Apple Orchard and authorized to spend $10,000 per year…”) can be effective, but it is also tricky to build the right motivations and enforcement mechanisms.
3. Donor Advised Fund: If the passion is one that benefits from monetary gifts, a donor advised fund (“DAF”) can be an effective way to help your loved ones stay involved while also reaping tax advantages, with enacting language such as, “I set aside $500,000 to the Lee Family Public Garden DAF, for the purpose of making grants to charities installing or maintaining ornamental gardens on lands open to the public.”
4. Incorporate or establish a charity: While often the most involved option, setting up a for-profit operation as a continuing business with its own succession plan or establishing a charitable organization to maintain a particular operation or purpose can provide the most robust preservation. These are often better equipped to ensure the continued success of a decorative pond installation business or preserve a historic farm than just leaving it in equal shares to your survivors.
5. Nothing: Sometimes the steps for preservation are sufficiently difficult or would so detract from your present enjoyment that your lifetime happiness and memories from the activity are enough – for both you and your loved ones.
Planning, even for recreational interests, can be complex. If you have a hobby you are interested in preserving, having a discussion about it with your estate planning attorney is the first step toward bringing it to fruition.
Virginia attorney Jonathan A. Nelson uses his extensive legal knowledge and trial experience to resolve conflicts, negotiate settlements, navigate compliance matters, and vigorously advocate in the courtroom in order to achieve the best possible outcomes for his clients. He practices in estate planning, probate, trust and estate administration, corporate law, and civil litigation related to these fields.
The attorneys of Smith Pugh & Nelson, PLC, offer the experienced counsel, personal attention, and customized legal services needed to address the many complex issues surrounding estate planning, probate, and trust administration. Contact us at (703) 777-6084 to schedule a consultation.