How to Give
BEQUEST
A charitable gift from your estate is a favored method of giving that enables you to achieve your financial goals and benefit the nonprofit of your choice. No other planned gift is as simple to implement or as easy to change should you ever need it during your lifetime.
A bequest may be right for you if:
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SAMPLE BEQUEST LANGUAGE FOR DONORS
The following is intended to help you and your attorney in drafting a bequest that meets your individual interests. As you consult your attorney on the selection of appropriate wording to reflect your own goals and intentions regarding the nonprofit of your choice, be sure the organization’s correct legal name appears in all final documents as:
“[insert Estes Valley Legacy nonprofit of your choice], a [insert incorp state] nonprofit corporation, or its successor, Federal Tax Identification Number: [insert the nonprofit of your choice tax id].” A General Bequest of a stated sum of money may be worded: “I give to [insert Estes Valley Legacy nonprofit of your choice], a [insert incorp state] nonprofit corporation, or its successor, Federal Tax Identification Number [insert the nonprofit of your choice tax id] [insert here the exact dollar amount].” A Specific Bequest of a certain asset from your estate may be worded: “I give to [insert Estes Valley Legacy nonprofit of your choice], a [insert incorp state] nonprofit corporation, or its successor, Federal Tax Identification Number [insert the nonprofit of your choice tax id], [insert here a description of the particular property].” A Residuary Bequest, after other bequests and expenses have been paid, may be worded: “I give to [insert Estes Valley Legacy nonprofit of your choice], a [insert incorp state] nonprofit corporation, or its successor, Federal Tax Identification Number [insert the nonprofit of your choice tax id], all [or a portion] of the rest, residue and remainder of my estate.” A Contingent Bequest if the Testator is not survived by certain individuals: “If [name/s of primary beneficiary/ies] do/es not survive me, or shall die within ninety (90) days from the date of my death, or as a result of a common disaster, then I give to [insert EstesValley Legacy nonprofit of your choice], a [insert incorp state] nonprofit corporation, or its successor, Federal Tax Identification Number [insert the nonprofit of your choice tax id], [insert here the exact dollar amount, description of property, or percentage of residual estate].” |
BENEFICIARY DESIGNATION
A beneficiary designation is one of the simplest ways to make a gift to the nonprofit of your choice. It's literally as easy as filling out a form. You can specify the individuals and charities you want to support and you can also specify the percentage of the assets you want each beneficiary to receive. Beneficiary designations are available when giving the following assets:
Retirement Assets An alternative to a bequest gift is to designate the nonprofit of your choice as the beneficiary of your retirement assets. This gift is simple because you can control the transfer of these assets at your death without changing your will or living trust. All you need to do is request (and complete) a new beneficiary designation form from your plan administrator. There is no need to modify your will or living trust. A gift of retirement assets has the added advantage of being among the most tax-wise ways to make an estate gift. This is because your retirement assets, if left to individuals, will be subject to income tax when they receive distributions and, in the case of a non-spouse, those distributions may be accelerated. With a gift to a non-profit such as the nonprofit of your choice, 100 percent of the funds are available for its charitable purposes. If you want to remember us in your estate plan, it is often better to leave other types of assets – cash, securities, real estate – to your heirs and give the more heavily taxed retirement asset to the nonprofit of your choice. Life Insurance Life Insurance policies can also be used to make a gift to the nonprofit of your choice. Complete and return to the insurance company a form designating that the nonprofit of your choice receives all or a portion of the death benefit associated with your life insurance policy. As an alternative to naming the nonprofit of your choice as the beneficiary, you can transfer ownership of the policy. Transferring ownership results in an immediate income tax charitable deduction and potential income tax savings in the year of the gift. Other Assets Commercial Annuity Contracts - a commercial annuity will sometimes have a remaining value at the end of the annuitant’s lifetime. You can name the nonprofit of your choice to receive all or part of this amount by designating it as a beneficiary (sole or partial) on the appropriate form from the insurance company. Bank Accounts - you can instruct your bank to pay the nonprofit of your choice all or a portion of what remains in a checking or savings account. Your bank can provide you with the appropriate beneficiary designation form. Investment Accounts - you can instruct your investment company to transfer to the nonprofit of your choice some or all investments held in the account at the time of your passing. Your broker or agent can let you know the process for doing this – it may be as simple as adding “T.O.D. to the nonprofit of your choice” after your name on the account. |
WAYS TO GIVE AND GENERATE INCOME
These are just brief descriptions of more complex gifts. These will require consulting your financial advisor.
Charitable Gift Annuity A charitable gift annuity is a way to make a gift to nonprofit of your choice, receive income for yourself or others and be entitled to a current income tax deduction for a portion of the assets given to fund the gift annuity. The new – and higher – annuity rates announced may make this gift a perfect fit for you. Deferred Charitable Gift Annuity A deferred gift annuity provides fixed payments to you for life in exchange for your gift of cash or securities. The payments start on a date you choose that is at least one year after you make the gift. If you are doing retirement income planning the new – and higher – annuity rates may make the deferred gift annuity the answer to your charitable and financial planning goals. Charitable Remainder Annuity Trusts Do you want to benefit from the tax savings that result from supporting nonprofit of your choice? A trust can reduce or even eliminate any gift or estate tax that might otherwise be due in your charitable donation to nonprofit of your choice. Charitable Remainder Unitrust A charitable remainder unitrust can help you maintain or increase your income while making a significant gift to nonprofit of your choice. If your unitrust grows, your payments will grow too, providing a hedge against inflation. |
Kent Meyer, Planned Gift Educator
Estes Valley Legacy PO Box 4221 Estes Park, CO 80517 970-480-7703 [email protected] |
Karen McPherson, Estes Valley Legacy Administrator
Estes Park Nonprofit Resource Center/Estes Valley Legacy 970-480-7805 [email protected] |