Dovetailing Gift & Estate Planning

In carpentry the dovetail joint is the strongest methods of joining different pieces of wood together without using nails or screws. The interlocking “tails” require precise measuring and cutting. Done correctly, the dovetail joints are not only functional, they are beautiful.

I like to use the image of the dovetail to explain the process of gift and estate planning. While gift and estate planning have many aspects in common, they are also different, and sometimes have competing interests. One major difference is that gifting often entails making an irrevocable transfer of an asset to a charity or family; either directly, or through another gift instrument or vehicle. So dovetailing estate and gift planning means measuring twice and cutting once.

I like woodworking. I like the planning, the idea of the project. I like selecting the right pieces of wood. The smell of sawdust is proof I’ve moved from concept to building. The sanding and finishing are the angels in the details – bringing beauty to function. So it is with gift planning. Working with an individual or family to explore what hopes and dreams they have for the next generation, and for the charities and causes they support, represent the idea or “why” phase of the process. Reviewing which assets to give, and those which will maximize outcomes, is like selecting the right piece of wood. You could call this the “what” to give decision. And once the selection decision is made it is time to discern the best way to accomplish all the family’s goals by making this gift. This is the “how” step in the process.

And rather than smelling the sawdust, there is an aroma of happiness which is generosity in action. The final step could include communicating any terms or instructions for the gift. Perhaps the gift is made in honor or in memory of a loved one. Maybe this gift is being used as a matching gift strategy to multiply the charitable impact. These are the finishing touches to a beautiful act of love.