Bequests

Bequests

The lasting impact of bequests—both large and small—has helped shape charitable organizations today. For many, a charitable bequest is the easiest and best way to make a gift to the the charity. By means of your will or other estate plan, you can name the charity as the beneficiary of a portion of your estate, or of particular assets in your estate. Many of the most powerful gifts with an enduring impact have been bequests. There are many reasons to make a bequest. A bequest allows you to honor a loved one, while providing critical support to the charity. Giving by bequest costs nothing now, yet it may give you a great deal of satisfaction to know that your future gift will live on.

Types of Bequests

Cash Bequest

The charity receives a specific dollar amount from your estate.

Bequest of Property

The charity receives specific assets, such as securities, real estate, or tangible personal property (for example, works of art or antiques).

Residuary Bequest

The charity receives all or a percentage of the remainder of your estate after the payment of any specific bequests and expenses.

Retirement Plan

The charity is designated as a beneficiary of the remainder of your IRA or qualified pension or profit-sharing plan.

Gifts That Pay You Income

You can establish a charity-managed trust or annuity through a bequest. This enables you to arrange for a tax-wise gift to pay income to your spouse, children, or other beneficiaries for life or a term of years, after which the assets pass to the charity.

Lead Trust

A lead trust can be established through a bequest. The charity receives income for a term of years from the trust, after which the assets pass to your beneficiaries, often at a much-reduced tax cost.

Benefits of a Bequest

An outright gift to the charity from your estate—whatever the amount, and whether it is expendable or for endowment—is entirely free from federal estate taxes. This means the charity is able to use the full amount of the bequest, whereas if it were left to an individual, a significant amount might go to federal estate taxes. Also, bequests generally are not subject to state inheritance or estate taxes.

You may create a separate fund named for yourself or in the name of someone you wish to honor. Named funds remain visible in the community because of the people and activities they support. This visibility also encourages others to give.

Assets You Can Give

• Cash
• Appreciated securities (Including Rule 144 Restricted Stock)
• Real Estate
• Personal Property
• Business Interests
• IRAs/Retirement Plans
• Life Insurance
• Copyrights
• Royalties
• Patents
• Assignment of contractual income rights
• Oil and gas interest
• Limited Partnerships
• Trusts
• Living Trust
• Revocable Living Trust
• Charitable Lead Trust
• Charitable Remainder Trust
• Donor Advised Funds
• Charitable Gift Annuities
• Life Insurance Gifts

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