Whether your estate is large or modest, you can create a personal legacy for Childhaven children that will give them roots and wings for generations to come. Here are a few options:
Leave a bequest in your will: Make a gift of cash by remembering Childhaven in your will.
A bequest can deliver a specific gift to Childhaven, or it can deliver a percentage of the balance remaining in your estate after other obligations—what’s known as a residual bequest.
A charitable bequest is deductible for federal estate tax purposes, and there is no limit on the deduction your estate can claim. In addition, the gift is usually exempt from state inheritance taxes.
If you already have a will, you need not rewrite it. Washington State law allows for the provision of a codicil, or a simply written addendum. Your estate planning attorney can advise you, or Childhaven can send you a simple codicil that we have prepared for your use. Click here for a PDF document with sample bequest language.
Name Childhaven as a beneficiary: You can designate Childhaven on your insurance policy, pension, retirement plan or Individual Retirement Account. An existing life insurance policy or a new one taken out especially for a charitable donation can be easily turned into a planned gift. For an existing policy, pension or IRA, just complete a change of beneficiary form. A new life insurance policy can be assigned to Childhaven after you make the first premium payment.
Establish a charitable trust: Transfer your assets into either a charitable remainder trust or a charitable lead trust. A charitable remainder trust allows you to keep the assets under your control for your entire life. You enjoy the benefits of the assets you plan to donate to Childhaven (real estate, dividends, income, etc.) as well as a tax deduction. Upon your passing, the assets in the charitable trust pass on to your named beneficiary—in this case, Childhaven.
With a charitable lead trust, the assets benefit Childhaven while you are alive. Any income or access to the assets is under the control of Childhaven and when you pass, the ownership transfers to your beneficiaries and out of the hands of Childhaven.
There are many tax benefits with either type of trust. However, as charitable trusts are complicated giving entities, you should consult your tax adviser about the exact tax benefits if you are considering setting up a charitable trust to benefit Childhaven.
Give a gift of stocks or bonds: Donate stocks that have risen in value since you purchased them—called “appreciated securities”—and Childhaven can receive maximum, immediate value from your gift while you get a significant break on your taxes. Check with your financial advisor or broker for details.
Consider gifts of real estate, jewelry or art: By leaving a gift to Childhaven, you’ll not only leave a legacy, but your heirs may realize significant estate tax savings.
Ask your estate planner about other options that may give you benefits today for your generosity tomorrow.