We had the pleasure of working with a remarkable couple, affectionately referred to as the Wildflower Family. Their beautiful home is as thoughtful as their philanthropic spirit—designed with the future in mind; it’s both environmentally friendly and built to address potential mobility needs.

When we first visited, they gave simple directions: “Our front yard is filled with wildflowers—you can’t miss it.” They were right—the vibrant display was unforgettable, a fitting metaphor for the couple’s generosity that continues to bloom in every aspect of their lives.

Throughout their lifetime, this family has prioritized giving, both through financial support and volunteer work. In recent years, they’ve been surprised by their growing capacity to give. While they didn’t hold high-powered jobs, they invested wisely and now find themselves in a position where they can give much more than they ever imagined.

The couple was referred to us by a nonprofit that has been a significant recipient of their generosity. They expressed a desire to continue their charitable efforts through their estate but weren’t sure how best to structure their giving in an impactful way that aligned with their financial goals.

This is where we came in, helping them navigate the complexities of their estate and giving intentions.

Here’s a look at what we did:

Key Considerations and Goals

1. Minnesota’s Estate Tax – The state’s estate tax thresholds were a concern, and they wanted to minimize the tax burden.
2. The Family Home – Their children didn’t want to inherit the house, not knowing how to manage or sell a home with so many intentional, environmentally conscious details.
3. Trust for Grandchildren – The grandparents had already set up a trust to support their grandchildren, so the couple wanted to ensure their estate plan complemented these existing provisions.
4. Modest Inheritance for Children – Their kids were financially stable, so they wished to leave an inheritance that would serve as a meaningful gift, potentially as a stream of income, but they didn’t feel the need to leave them everything.
5. Tax Issues – The couple faced year-to-year tax challenges and were looking for ways to secure charitable deductions now and in the future.

Strategic Solutions

After exploring various options, several ideas resonated deeply with them:

1. Retained Life Estate – By keeping their home until they pass away, the couple could receive an immediate tax deduction and reduce the size of their estate, thereby lowering estate taxes. When they pass, the home will be sold, and the proceeds will benefit their favorite nonprofits.
2. Charitable Remainder Unitrust (CRUT) – They were excited by the idea of funding a CRUT, which not only provides an immediate charitable deduction but also creates a stream of income for them and their children. It also gives them flexibility to add more assets over time in the coming years or through their estate.
3. Testamentary Donor-Advised Fund (DAF) – Setting up a DAF in their estate plan gives them the freedom to adjust their charitable beneficiaries without having to update their will through an attorney.
4. Gifting Appreciated Stocks – Given their successful investments, they plan to continue donating stocks to support their favorite charities and receive tax benefits each year.

Their Plan

Though the Wildflower Family had a substantial amount of financial knowledge and a talented CPA, they were unaware of these charitable tools. Once they learned about the possibilities, they were excited by the potential to amplify their giving. It was incredibly rewarding for us to guide them through the process, knowing that their generosity will impact their community both now and for generations to come.