Hope Care Center can be named as a beneficiary in your will in any number of ways. You may make a specific dollar bequest, or choose to give a percentage of your estate. You may even name Hope Care Center as a contingent, or secondary, beneficiary.
Benefits of a charitable bequest include:
- The deduction of the fair market value of property given from your taxable estate, which could result in estate tax savings
- Your retaining full control of your property during your lifetime
- The satisfaction of knowing that you will make a difference in the lives of the people living at Hope Care Center.
Suggested Language for Charitable Bequests It is possible to bequeath a specific dollar gift, or specify a percentage of one's estate for charitable purposes. Contingent bequests (meaning the bequest would be made only upon certain circumstances, such as children predeceasing a parent) are also quite common.
Following is suggested language for each of these kinds of bequest:
- Specific Dollar Bequest
- I give [insert desired amount here] to Foundation for Hope, c/o Hope Care Center, 115 East 83rd Street, Kansas City, MO 64114.
- Percentage Bequest
- I give [insert desired percentage here] of my residuary estate to Foundation for Hope, c/o Hope Care Center, 115 East 83rd Street, Kansas City, MO 64114.
- Contingent Bequest
- Should [insert contingency here], I then give [insert desired amount or percentage here] to Foundation for Hope, c/o Hope Care Center, 115 East 83rd Street, Kansas City, MO 64114.
Benefits of these planned gifts are varied. By "giving" a paid-up life insurance policy you no longer need, you are able to make a significant gift to charity at very little cost to you. Under some circumstances you can even deduct premium payments you are making on policies that aren't yet paid up, and receive an income tax deduction for the value of the policy. Significant income and estate tax savings can often be realized by naming a charitable beneficiary to a qualified retirement plan. These are generally the most heavily taxed assets found in your estate, and most of these taxes can be avoided if the plan balance is contributed to Hope Care Center or another charitable organization. If you plan to give some assets to your children and a charitable organization, consider making the charitable gift from the balance remaining in a qualified plan. The charity will not owe income tax upon receipt of the gift (as would your children), and your estate will receive an estate tax deduction equal to the value of the contributed plan balance.
Charitable Gift Annuity Charitable Gift Annuities are a form of planned giving dating back two centuries. It is a combination of a gift to a charity and an annuity. A Charitable Gift Annuity is a simple contract between an individual and Hope Care Center whereby the individual transfers cash, securities or other property to Hope Care Center, and Hope Care Center promises to pay a given amount monthly, quarterly, semi-annually or annually to the individual for life, or the individual and his or her spouse for both lives.
Charitable Remainder Trust A Charitable Remainder Trust is a trust that pays income to family members. After all income payments have been completed, the corpus (or remainder) is distributed to Hope Care Center. The person establishing the trust may select the method of income payments, who is to receive the income from the trust, the period of years those persons are to receive the income, and the charity or charities that will receive the remainder after all income payments are completed.
Benefits of charitable remainder trust include:
- A bypass of capital gains tax if appreciated assets such as stock or real estate are used to fund the trust
- An increased income from the contributed assets
- A current income tax deduction
- A potentially reduced estate tax burden
Benefits are maximized when the property used to fund the trust has great appreciation potential. Since the annuity is fixed and does not increase, property which appreciates very rapidly could increase to such an extent that during the latter years of the trust the majority of the earnings or appreciation simply increase the total value of the trust corpus, this means very valuable property can be passed on to children or grandchildren at little or not tax cost.
Life Estate Reserved If you own a home and intend to continue living there, you may deed the remainder interest in the property to Hope Care Center while retaining the use of the property for life. This type of gift is accomplished very easily by preparing a deed from the owner to Hope Care Center in which the owner reserves the right to use the property for one or two lifetimes. Benefits of a life estate agreement include the ability to give property, receive a current income tax deduction for the gift, and still retain the right to live in the property for life. This deduction could save a substantial amount of current income taxes, and is especially attractive for a person who plans to transfer the property to charity anyway via his or her will. In addition, when the donor passes away, there will be savings in both probate costs and, potentially, in estate taxes.
Information provided for at this site is for educational purposes only. It is not meant to be construed as financial, legal, or tax planning advice. Please consult your own advisors before establishing any kind of planned gift.