Bequests enable assets to be distributed in the amounts or proportions designated by the donor. Many assets – including cash, securities, real estate and tangible personal property – may be transferred through a donor’s estate. Gifts can be made as a Specific Bequest, in which MVH or WNR receives a specific dollar amount, or as a Residual Bequest, in which MVH or WNR receives all or a stated percentage of an estate after distribution of other specific bequests, and after the payment of debts, taxes and expenses.
Gift of Retirement Assets
Retirement plan assets from qualified plans, such as 401(k), 403(b), IRA, Keogh or pension plans, are another way for donors to provide financial support while receiving significant tax savings. Retirement plan assets are often subject to extremely high estate taxes, and the income – when received by an individual beneficiary – is fully taxable.
Gift of Life Insurance
Donating life insurance can be an attractive option, as it allows a donor to make a gift by naming the Hospital or Windemere as the owner and beneficiary of a life insurance policy. The donor receives a charitable income tax deduction, based upon the lesser of the policy’s fair market value or the net premiums paid. Donors may also wish to make gifts of paid-up policies, resulting in a charitable income tax deduction for the policy’s cash surrender value.
Charitable Gift Annuity
A Charitable Gift Annuity may be the answer for donors wishing to supplement their income with fixed annual payments. Charitable gift annuities act as solid investments in the future and can help to form a valuable part of long-term support. Annuity rates increase with the age of the income beneficiary.
Charitable Remainder Trust
A Charitable Remainder Trust is a personal management plan that provides a variable or fixed lifetime income, as well as a charitable income tax deduction, for the donor. There are two basic types of charitable remainder trusts: the unitrust and the annuity trust.
- The Charitable Remainder Unitrust creates a hedge against inflation over the long term, by paying the donor a predetermined percentage of the fair market value of the trust’s assets as reevaluated annually.
- The Charitable Remainder Annuity Trust is best for donors who seek a regular, fixed income, and prefer the satisfaction of knowing the exact amount of payment in advance.