|
PLANNED GIVING
You can make a valuable contribution to Hancock Shaker Village without incurring any out-of-pocket expenses and with tax benefits as well. HSV offers a number of Planned Giving strategies, all of which benefit the donor and the institution.
There are three simple types of planned, or deferred, charitable gifts that require little or no assistance from an attorney, CPA, or other financial adviser.
Several other Planned Giving mechanisms involve charitable annuities and trusts. These arrangements are more complicated and should be formulated with the help of an attorney or investment counselor.
The most common types are the Charitable Gift Annuity, Charitable Remainder Trust, and the Charitable Lead Trust. These trust and annuity plans are offered to HSV’s friends with the administrative help of our independent investment management organization, which guarantees that the terms of the legally binding contract are observed for the duration of the plan.
- Charitable Remainder Trust
How Planned Giving Benefits HSV
The income generated by trust gifts goes directly into HSV’s endowment rather than funding current operations. Endowment growth in turns produces increased dividend revenue that can be drawn down annually in a predictable pattern. Unlike the repeating fundraising cycles of Membership and Annual Fund campaigns, Planned Giving donations over time help the museum achieve financial independence and self-sufficiency.
Wills and Testaments
· Percentage Bequest: A percentage of the donor’s estate is left to HSV.
· Specific Bequest: A specific dollar amount is left to HSV.
· Residual Bequest: A remainder amount, after other specific bequests are concluded, goes to HSV.
· Tax Benefits: Bequests are totally deductible for federal estate tax purposes.
· The donor’s attorney can prepare either a new will or an inexpensive codicil to an existing will, creating a bequest for HSV.
· Surviving Spouse’s Will: A prior written directive to a surviving spouse can express the donor’s intention to name HSV as a beneficiary when the will is redrawn.
Life Insurance
· You can name HSV as an additional beneficiary to an existing policy.
· You can purchase a new policy naming HSV as beneficiary.
· With either of these plans, the amount left to HSV will provide a charitable income tax deduction for the donor’s estate.
· A donor can name the museum as owner and irrevocable beneficiary of a whole life policy. The annual premiums paid by the donor are a charitable deduction.
Retirement Plans
· Question: Although retirement plan assets can be rolled over to a surviving spouse, when the spouse dies, any remaining assets may be taxed several times at the federal and state levels. Can this be avoided?
· Answer: If a donor leaves some retirement plan assets to HSV, some taxes can be avoided at the federal level, ensuring that the assets will have maximum charitable value.
Charitable Gift Annuity
· The donor places cash or property in an irrevocable trust. In exchange, the donor receives a contract guaranteeing the donor or his/her beneficiaries an annuity for life. The donor can arrange for either fixed or variable payments.
· The donor receives an immediate charitable income tax deduction. No income or estate taxes are due on the asset when the donor dies, since it is removed from the estate.
· HSV receives any remaining assets at end of life or some other specified term as defined in the contract.
Charitable Remainder Trust
· The donor places cash or property in an irrevocable trust and in exchange is guaranteed by contract a fixed payment made annually to the donor and/or other named beneficiaries for a fixed period (often the life of the donor).
· The payment amount is normally calculated according to a prescribed table measured according to the recipient’s life expectancy.
· HSV receives any remaining assets upon the death of the recipient(s).
Charitable Lead Trust
· The donor places cash or property in an irrevocable trust.
· HSV receives a fixed payment for a fixed period of years as specified in the contract.
· At the end of the period, the remaining assets revert to the donor and/or other beneficiaries. If the donor receives the remainder, he/she gets a charitable income tax deduction. If a beneficiary gets the remainder, he/she gets a charitable gift tax deduction.
For more information please contact:
Christian G. Kersten, Vice President for Advancement
P.O. Box 927, Pittsfield, MA 01202
413.443.0188 Ext. 221
ckersten@hancockshakervillage.org
|
|
