You may be looking for a way to make a significant gift to help further our mission. A bequest is a gift made through your will, trust, or retirement plan. It is one of the most popular and flexible ways to support Children of the Nations. Let us help you make sure you are using the correct language to best support us.
WHAT ARE THE BENEFITS OF MAKING A BEQUEST?
- You leave a lasting legacy to be remembered. (Did you know that you can direct your gift to particular projects of COTN if you wish?)
- You lessen the burden of taxes on your family. (Some assets are better to give than others.)
- You may be able to receive both income and estate tax savings by using a "planned gift" to accomplish your bequest.
HOW CAN I LEARN MORE?
Contact us today to find out more about how your bequest can make a difference!
Eric Nachtrieb, Vice President of Advancement at email@example.com or 360-633-2899
HOW DO I MAKE A BEQUEST?
A bequest is one of the easiest gifts to make. If you don't have a will, please use our online tool, FreeWill, to start your will today. Alternatively, with the help of an advisor, you can include language in your will or trust specifying that a gift be made to COTN as part of your estate plan.
WHAT ARE MY OPTIONS?
A bequest can be made in several ways:
- You can gift a specific dollar amount or asset.
- You can gift a percentage of your estate.
- You can gift from the balance or residue of your estate.
- You can make a beneficiary designation of certain assets.
- You can leverage your estate intentions into lifetime income, a significant tax deduction, and a "free pass" to sell appreciated assets without paying capital gains taxes.
Example No. 1 "Save money for your children"
Bill and Nancy Smith hold stock, cash, real estate, and an IRA and retirement assets. They plan on giving 20% of their estate to COTN. After meeting with COTN, they:
- - Created a meaningful fund at COTN (in their case, they wanted to support ______specifically).
- - Clarified their will to strictly give their intended 20% through their IRA and retirement assets. If their kids received these assets, they would pay income taxes when they took distributions. The kids received a "stepped-up basis" in the stocks and real estate and were able to immediately sell these inherited assets without paying any income taxes.
Example No. 2 "Use your free pass to sell your real estate without capital gains taxes"
Kate and Marty Jones plan on including COTN in their estate plan. Meanwhile, they are tired of dealing with the ongoing hassles of their rental real estate. They want to sell the property, but they are not crazy about paying so much capital gains taxes. After meeting with COTN, they:
- - Put their property into a charitable remainder trust (CRT) by having an attorney draft the CRT and deed the property to the CRT.
- - Immediately received a significant income tax deduction because the trust mirrors their estate plan and gives the property to COTN after their lifetimes.
- - Were able to sell the property without paying any capital gains taxes.
- - Received a lifetime annuity payment from the CRT, alleviating their concerns about outliving their assets.
- - Will ensure the future success of COTN by releasing the remaining principal of the CRT to COTN after their lifetimes.
Example No. 3 "Give a residence to COTN and receive a HUGE income tax deduction NOW"
Brad and Sally Thomas were planning on giving 50% of their estate to COTN, which includes their home. After meeting with COTN, they:
- - Deeded the remainder interest in their home to COTN and signed an agreement clarifying their continued rights and obligations (to keep paying the insurance and taxes).
- - Received a considerable income tax deduction (75% of the value of their home).
- - Were able to continue to live in their home, paint it pink, and live happily ever after (with a greatly reduced tax bill).
Sample Bequest Language Options