A Legacy Of Love

As a new Development Officer with Hospice, I was eager to make a good first impression as I walked into Ameriprise Financial to interview Jim Prioletti for this article.  Since being hired at Hospice, Jim is one of the first people I met outside of staff and volunteers.  He has been supporting the work of Hospice of CNY for many years, and his welcoming attitude and warm smile instantly put me at ease.

In listening to Jim, it became apparent that the fundamentals of his life are his family, his job, and giving back to his community.  Though philanthropy is defined as man’s love of mankind, in Jim’s case, it is defined by the love of a parent for his children.  Jim beams with pride when he speaks about his children, explaining that he makes it a point to share the importance of giving with them.  This year, Jim was proud to sponsor a Father-Son Table at the Coaches vs. Cancer BasketBall Gala.  “Teenagers are the future of philanthropy.  It is important for them to know that the world doesn’t revolve around them.  Being at an event like this lets them see the impact they can have on the lives of others.  Next year, we may sponsor a Mother-Daughter Table to support a charity. ” Jim is resolute in the values that he wants to leave for his children, and he leads by example in every way.  

When I asked Jim what prompted him to start supporting Hospice of CNY, he said “Adrienne Quirk (a former employee of Hospice of CNY) suggested that I consider supporting Hospice one day.  She used to work for me, and I knew about Hospice, so it was an easy decision for me.”  Ameriprise has a Matching Gift Program, so “we looked into it, and were able to double the donation given to Hospice.”  After inquiring as to why Ameriprise would consider matching employee donations, Jim reminded me that “this way, Ameriprise can show their support of our local community too.” 

Even Jim’s profession circles back to the idea of giving and supporting your neighbor.  Jim is a Senior Financial Advisor, Certified Financial Planner®, ChFC® with Ameriprise Financial, and while sitting in his office I was quite impressed with the ambiance, and especially the beautiful three paneled computer screen with a beach scene on it.  When I told Jim how impressed I was with his set-up, he smiled and explained that his office, though governed by Ameriprise, was a self-sustaining office.  All of the beautiful office space and warm furnishings were supported by his work, and the work of his employees.  The pride in his voice was again unmistakable. 

I asked Jim what exactly a senior financial advisor does.  “We look at a person’s entire financial picture.  This includes cash flow, income needs, retirement planning, protection needs, tax planning and estate planning.  Looking at the entire picture allows people to plan so that they can reach their goals.”  Finances, a concept that until that moment had seemed so cold and foreign to me, just became less daunting, and even a bit exciting.   

Social Capital was a topic that Jim referenced throughout our conversation.  “To boil it down, think of your tax dollars as social capital.  In other words, it is money that you and I can’t keep.  By planning your giving, you can maintain control over your social capital and support the charities that you believe in.”  The more Jim spoke about different investment vehicles and capitalizing on and building wealth, the more pieces of this puzzle fell into place for me.  Jim is not only invested in his future, the futures of his children and the future of our community, but he is also invested in the dreams of all of his clients.  His job allows people to plan their finances in a way that helps them accomplish their dreams. 

Sitting across from this man who epitomizes the word philanthropy, I thought about my impact on the world around me.  I consider myself benevolent, and I make donations each year to the charities that mean the most to me, but what legacy will I leave for future generations?  First, I must define the difference between annual giving and leaving a legacy.  According to Jim, the answer is simple.  Planning our charitable giving is our way of leaving a legacy for future generations.  This legacy may include a gift that not only ensures your favorite Charity is able to continue its good work, but one that also supports your loved ones long after you are gone. Planning and examining your financial situation now makes it possible for you to give a more substantial gift than you ever imagined. 

It is with a renewed hope for building upon my own legacy that I left Jim Prioletti’s office and began to research the different ways that one can leave a legacy.  I decided to start at home, with Hospice.  Our Founders Circle is a special recognition group honoring generous friends who make a commitment to Hospice through a planned gift to the Foundation.  Founders Circle members are caring people who have included Hospice in their estate plans through bequests, charitable gift annuities, trusts, and gifts of real estate.  So with all of these gifts, the real question became “How do I know which method is best for me?”  The research ensued, and these are some examples that I discovered:   

Bequests are the simplest and most common way to provide meaningful support to Hospice of Central New York.  This is a provision in your will or living trust for a gift to Hospice Foundation. (I give to Hospice Foundation of CNY of Liverpool, New York, _____dollars ($___) or ___% of my net estate).  You may choose to benefit a specific Hospice program or its general operations.  A bequest in your will is deductible from federal estate taxes, making it an advantageous choice for heirs, while supporting a cause that you believe in far beyond your lifetime. 

Life income plans provide a steady source of income while also supporting Hospice of Central New York.  The most popular and flexible type of life income plan is a charitable remainder trust. Cash, securities, real property, or other assets are transferred into a trust, which then pays you (or others you choose to designate) an income, either for a period of time you choose, or for life. When the trust terminates, the remaining assets in the trust are transferred to the Hospice Foundation of CNY. 

A charitable gift annuity is a simple, contractual agreement between one or two people and the Hospice Foundation of CNY.  The individuals transfer assets to the Foundation in exchange for a promise to pay an annuity to each individual. Payments can begin immediately or can be deferred for a period determined by the individual/s and set forth in the annuity contract.  Some possible tax advantages include a federal income tax deduction for the donated assets, deferral of federal and state capital gains taxes upon the sale of donated appreciated assets, avoidance of taxes on future capital gains, and exclusion of the entire value of the gifted assets from the value of your estate for federal and state estate tax purposes. 

Almost any type of real estate can be given to Hospice.  You can make an outright gift during your lifetime, you can make a bequest of real property, or you can transfer property to Hospice now, while retaining the right to use it for the rest of your life. 

You can help your heirs save on taxes by naming the Hospice Foundation of CNY as the leading beneficiary of your Individual Retirement Account (IRA) and establishing a charitable trust. The trust provides income for your children or loved ones for 20 years, after which the balance is used to create a permanent fund in your name through the Hospice Foundation of CNY. Your heirs actually will receive more income from the IRA than if they had been named the beneficiaries outright.

Hospice Foundation of CNY can also be named as the owner and beneficiary of a new or existing life insurance policy. In return for this, you may receive a current income tax deduction of your premium contribution during your lifetime, and will be able to give a much larger amount than what you could otherwise afford due to the leverage insurance provides.  In addition, this sizeable gift can be made without affecting the control of a family business or other investments.    

Please know that none of this should be considered financial, tax or legal advice.  I just wanted to share the information that I learned after being inspired to look into my own legacy.  The good news in all of this is that you aren’t expected to do it on your own!  If you are interested in making a planned gift, your first step is to talk to a qualified financial advisor.  If you don’t have one, Jim Prioletti suggests that you begin by asking people who you trust for referrals.   

Though this is a wealth of information, and can appear daunting, I hope it has helped.  I know that I am glad to have met Jim Prioletti who, through his story has inspired me to examine the mark that I will leave on this world.  Thank you for sharing your story with me Jim. You have inspired me to begin building my legacy now, so that I can take care of the people and the charities I love long after I am gone.