What will your legacy be? Have you considered planned giving?
Planned giving is a method of supporting nonprofits and charities that enables donors to make larger gifts to the organization than they could typically make exclusively from their income. While some planned gifts provide a lifelong income to the donor, others use estate and tax planning techniques to provide for charity and other heirs in ways that maximize the gift and/or minimize its impact on the donor’s estate.
You may be wondering how to include Happy Hill Farm in your will or estate. Writing a bequest is often one of the easiest ways. There are three different ways you can make a bequest:
Specific Bequest – You designate a specific dollar amount, specific percentage, or specific property to Happy Hill Farm. Example language for a Specific Bequest: “I bequeath to Happy Hill Farm the sum of $___________ (or asset) to be used for its general support (or for the support of a specific fund or program).”
Residual Bequest – Your estate will pay all debts, taxes, expenses, and specific bequests. The remaining amount, “the residue,” will be transferred to Happy Hill Farm. Example language for a Residual Bequest: “I bequeath to Happy Hill Farm all (or state a percentage) of the rest, residue, and remainder of my estate, both real and personal, to be used for its general support (or for the support of a specific fund or program).”
Contingent Bequest – You can ask that Happy Hill Farm receive all or a portion of your estate only under certain circumstances. Example language for a Contingent Bequest: “If (insert name) is not living at the time of my demise, I bequeath to Happy Hill Farm the sum of $_______ (or all or a percentage of the residue of my estate) to be used for its general support (or for the support of a specific fund or program).”
There are many options for making a planned gift. The process and tax benefits can often seem overwhelming. Our Board of Directors realizes the impact that planned giving can have for Happy Hill Farm as well as for our donors. In fact, one of our Board Members has graciously made available the services of PhilanthroCorp to provide complimentary consultations on planned giving for our donors. They can walk you through everything from a simple bequest to one of the following types of planned gifts, and more!
LIFE INCOME GIFT – Life Income Gifts enable a donor to have the satisfaction of making a meaningful lifetime gift without sacrifice, while maximizing income tax and financial benefits. With a Life Income Gift, you irrevocably transfer selected assets to a charity of choice now, and in return, you and/or a survivor/designated beneficiary receive income for life. Thus, the assets are used to support the charitable organization.
CHARITABLE LEAD TRUST – Individuals with very large estates can use a Charitable Lead Trust to benefit a charitable organization and pass principal to family members with little or no tax penalty. You transfer assets to a trust that provides payments to the charitable organization for a term of years. Then the trust principal goes to your designated beneficiaries at a greatly reduced federal gift and estate tax.
GIFTS OF RETIREMENT PLANS – Many individuals today have large qualified retirement plans such as an IRA, 401(k), or Keogh plan. Once the owner begins to receive payments from the qualified plans, the distributions are taxed. When distributions are made to a charitable organization or assigned to a charitable organization as a beneficiary upon death, there are both significant tax benefits for you and significant impact for the charitable organization of choice.
If you would like to secure a complimentary consultation with PhilanthroCorp, please provide your name and phone number either by email to firstname.lastname@example.org or call us at 254.897.4822. We will have a representative from PhilanthroCorp contact you directly to schedule your private, complimentary consultation.
**Note: The material presented in this publication is not offered as legal or tax advice.