“Accelerate” Your Bequest into a Lifetime Income Gift

Rather than make a charitable gift by will, life insurance or other beneficiary designation, you may find it extremely advantageous to create a “lifetime income gift” – a gift annuity or charitable remainder trust – under which you will be paid income for life, with the assets later benefitting our programs.
           
Take a charitable remainder trust, for example.  Basically, this is a trust in which you irrevocably place cash, securities or other property, but keep a specified income.  You give us the “apple tree” but keep the fruit – an income for life.  When the trust ends, the property in the trust passes for our benefit, much as if you had left it in your will.  But because you chose to “accelerate” your bequest by means of a trust, Congress says you are entitled to a substantial income tax charitable deduction. Depending on how you arrange your trust, many other advantages are possible:

  • Increased income for your family
  • Capital gains tax avoidance
  • Favorably taxed income
  • Diversion of income to a family member in a low tax bracket
  • Estate tax savings
  • Professional investment of your funds
  • A hedge against future inflation
  • Reduced estate settlement costs
  • Meaningful support for our future

Please call our office for more information on these satisfying gift arrangements.

 


 

Tips for Couples Who Marry Later in Life

Older brides and grooms, particularly those with families from previous marriages, should review their retirement plans after saying “I do.”  Certain qualified retirement plans are required to be paid as joint and survivor benefits unless the spouse has properly waived the right to receive survivor benefits.  A waiver of this right prior to marriage (e.g., in a prenuptial agreement) may not be effective, since the parties are not “husband” or “wife” until after the ceremony. 

Another consideration is the investment mix of the couple’s retirement assets.  Newlyweds should review their total retirement plan holdings to determine whether they are invested too heavily in equities or bonds, given the ages of the spouses.  Portfolio mix is particularly important where one or both participate in 401(k) plans that may have substantial holdings in the employer company’s stock.  The couple can choose to achieve a more diversified investment mix by balancing one spouse’s more aggressive investments against the other’s more conservative holdings, or having one spouse concentrate on growth, or growth and income, while the other invests in international and small-cap stocks.

 



Remarkable Things You Can Do with Your Will

Your will can be far more than just a dry, legal document.  Wise planning and creativity will enable you to:

  • Leave special items to special people . . . the cuckoo clock to William, who tried to catch the bird as a child . . . the hand-painted china to Linda, who always treasured it.
  • Help a friend.  Louise is leaving us funds for the purpose of establishing a gift annuity that will assist her best friend, Mary, who has been struggling financially.
  • Encourage a young person.  Joan is making bequests that will be earmarked for a college fund for her young grandchildren.
  • Leave the world a better place.  Your bequest to our future can express your concern for humanity and make a lasting difference in the lives of future generations.

For assistance in planning your own legacy, please call our office.  We can provide you and your attorney with our correct legal name and ideas for benefitting specific programs.

 



The Satisfaction of Memorial Giving

The passing of someone close to you is rightfully a time for remembrance, reflection and recognition. Many people search for ways to commemorate the life of a husband, wife, dear friend or family member – to make a lasting statement about what that person meant to them.

Donors often make gifts that stand as a memorial to a loved one and at the same time advance our mission in a meaningful way.   How you decide to honor this special person is up to you.   We encourage memorial gifts of all kinds, including bequests and distributions from living trusts in memory of loved ones.  If you or your attorney would like suggested phrases for a memorial gift or bequest, please call or write our office.

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The materials contained on this website are intended only to show some ways by which you can make a charitable gift or bequest and thereby minimize federal tax liabilities, as authorized by the Internal Revenue Code. All examples are of a general nature only and should not be applied to your specific situation without first consulting your attorney or other advisers.