Scenario: We received a call from another advisor asking us to collaborate on a client. He introduced us to a retired executive, single, never married and without children. She did have two nieces she wanted to help but not take care of.
Problem: Her initial concerns were for long-term care provisions. Would her savings sustain the rising costs of treatment should she need prolonged care?
When we started digging a little deeper, we found out she had other concerns. She was a long-time contributor to several local causes that were very meaningful to her. She lived on a loved property abutting a park where she walked daily. She was a huge advocate of pet adoption and owned several herself. She worried about what would happen when her contributions stopped.
Solution: We suggested a life insurance policy with a long-term care rider. The rider will address her concerns for her personal care if needed.
Then we contacted the local Community Foundation to talk about a Donor Advised Fund. (Had there not been one in her area, we would have contacted a national organization we work with that provides this service). They established a fund in her name that will receive a significant IRA tax free at her passing. The balance of what is left of her life insurance will go to her nieces.
Outcome: The client, our colleague and the Community Foundation have all benefitted from a simple plan and each are grateful, and we are grateful to be able to assist everyone.