Charitable Bequests—A Gift in Your Will
A popular and enduring planned gift is a simple charitable bequest, which is a gift made through your will. Bequests are popular because they give you the opportunity to leave a lasting legacy. When you make a charitable bequest, you retain full use of your property during life, so there is no disruption of your lifestyle and no immediate out-of-pocket cost.
To make a bequest, simply designate that part of your estate passes directly to LifeSpan Resources. Since a charitable bequest can take many forms, you have remarkable flexibility in how you make this designation. For example, you can leave…
- a specific asset
- a specific sum of money
- a percentage of your estate
- what remains of your estate after you have provided for all of your other beneficiaries.
You can also state exactly how you want your bequest to be put to use. Or, you can provide an unrestricted bequest that can be used whenever
and wherever it’s needed most. Most importantly, you can change your bequest whenever you choose—you remain in complete control of the planning process.
If you would like to designate that all or part of your estate passes directly to LifeSpan Resources, you may add an amendment or codicil with this language:
Remaining:
I hereby give and devise to LifeSpan Resources, Inc., (EIN 35-1306887), 33 State Street, 3rd Floor, P.O. Box 995, New Albany, Indiana 47151-0995, an Indiana non-profit 501(c) 3; to further the mission of the organization without restriction as to use, (all or ____ percent or fraction) of the rest, residue and remainder.
Specific sum:
I hereby give and devise to LifeSpan Resources, Inc., (EIN 35-1306887), 33 State Street, 3rd Floor, P.O. Box 995, New Albany, Indiana 47151-0995, an Indiana non-profit 501 (c) 3; to further the mission of the organization without restriction as to use, the sum of $___________________ (or the percent of fraction for the same purpose).
Check the Charitable Bequest Box on our Legacy Society Form here. Thank you!
Gifts of Stock
Gifts of long term, highly appreciated securities are the most common type of outright property gift. Donors typically give individual stocks, but bonds or mutual fund shares are also attractive gift options. Outright gifts of securities can be made quickly- and these gifts let you do more with your gift because of the very attractive tax benefits.
A charitable gift of appreciated securities held long term is not considered a sale and does not generate any capital gains tax, no matter the amount of the gain. To encourage gifts of appreciated property, Congress provides a valuable tax incentive—a charitable income tax deduction for the full fair market value of the securities (including the gain) for itemizers.
For example, if you give shares of stock worth $10,000, you can deduct the full amount on your income tax return (subject to certain income limitations) even if you bought the stock for $1,000. In addition, when we sell the stock, we keep every penny of the proceeds since we are a tax-exempt organization.
If you sell the stock, you will be responsible for paying taxes on the appreciated amount.
Transfer gifts of stock directly to: LifeSpan Resources, Inc., EIN-1306887, 33 State Street, 3rd Floor, P.O. Box 995, New Albany, Indiana 47151-0995, an Indiana non-profit 501 (c) 3, to further the mission of the organization without restriction as to use.
Note: Be sure to transfer the stock directly to LifeSpan Resources, Inc. Do not sell the stock before gifting it to LifeSpan Resources or you will lose this important tax advantage.
Check the Gift of Stock box on our Legacy Society form here.
IRA Gifts
Make a Qualified Charitable Distribution from Your IRA
A qualified charitable distribution from an IRA is a good way for IRA owners age 70½ and over to support our work. It’s easy to do.
- Instruct your IRA custodian to make a distribution directly to LifeSpan Resources, Inc.
- Although there is no tax deduction, the distribution is excluded from your income for federal tax purposes—no tax is due!
- Up to $100,000 of your gift (annual aggregate limit) qualifies for this favorable tax treatment.
- Your gift makes an immediate impact.
- A qualified charitable distribution from an IRA counts toward a donor’s required minimum distribution (RMD) if one is due.
- Make a qualified distribution from your IRA by designating a set dollar amount or a percentage of the account to: LifeSpan Resources, Inc., (EIN 35-1306887), 33 State Street, 3rd Floor, P.O. Box 995, New Albany, Indiana 47151-0995, an Indiana non-profit 501 (c) 3; to further the mission of the organization, without restriction as to use.
- Note: Contributions to your IRA after age 70½ can impact the amount eligible for a tax-free transfer.
Check the IRA Gifts box on the Legacy Society form here.
Gifts of Retirement Account Assets
Many donors use qualified retirement account assets in their charitable gift planning. This is an easy gift to make and has distinct planning advantages.
Retirement account assets left to loved ones may be subject to higher taxation than other types of assets. By using retirement account assets to make a gift (and selecting alternative assets to leave to family members), you may be able to reduce taxes that otherwise would be imposed on those assets and leave more to your intended beneficiaries.
A very easy way to make a gift from your IRA is to add LifeSpan Resources as a beneficiary on your retirement account. You may designate a set dollar amount or a percentage of your account to be left directly to: LifeSpan Resources, Inc., (EIN 35-1306887), 33 State Street, 3rd Floor, P.O. Box 995, New Albany, Indiana 47151-0995, an Indiana non-profit 501 (c) 3; to further the mission of the organization, without restriction as to use.
Check the Gift of Retirement Account Assets on the Legacy Society form here.
Charitable Remainder Trust
Another method of making a gift is a Charitable Remainder Trust. This option comes with a retained right to income, with the remainder designated to LifeSpan Resources. Let’s look at some of the benefits a charitable remainder trust can provide:
- An income for you and/or your beneficiaries for life or a period of up to 20 years
- An immediate and substantial income tax charitable deduction (subject to certain income limitations) for itemizers
- Potential avoidance of current capital gains taxes when the trust is funded with long-term appreciated property
- Reduction of your assets to reduce or avoid estate taxes
- Substantial reduction of probate costs, taxes, and other estate transfer expenses.
An Immediate Charitable Deduction
A gift to a charitable remainder trust qualifies for an immediate income tax deduction, even though income is to be paid to the donor (and/or other beneficiaries) for life. The exact amount of the charitable deduction depends on the:
- value of the property transferred to the trust
- amount of income benefits that are payable each year to individual beneficiaries
- approximate length of time the income benefits will be paid
- prevailing interest rates at the time the gift is made.
Despite the tax and financial benefits of a charitable remainder trust, you should consider this kind of arrangement only if you and your advisors determine it is compatible with your overall estate, tax, and financial plan.
Choose this option of a Charitable Remainder Trust, with the remainder of assets left in the trust, designated to: LifeSpan Resources, Inc., (EIN 35-1306887), 33 State Street, 3rd Floor, P.O. Box 995, New Albany, Indiana 47151-0995, an Indiana non-profit 501 (c) 3; to further the mission of the organization without restriction as use.
Check the Gift of Charitable Remainder Trust on the Legacy Society form here.
Gifts of Real Estate
A donor who gives LifeSpan Resources appreciated real estate can completely avoid capital gains tax on the appreciation and qualify for a charitable income tax deduction for the full fair market value of the property.
Gift of a Remainder Interest in a Personal Residence or Farm
A special provision of the tax law allows an immediate income tax charitable deduction for a gift of a remainder interest in your home or farm. With a remainder interest gift, you retain an absolute right to occupy the home or farm for your life (or the life of a family member). The property passes to us only after termination of the life estate(s).
The charitable deduction allowable for this future gift is the present value of our right to receive the property at some later date. The age of the life tenant is the primary factor in determining the present value of our deferred interest and the charitable deduction. The gift is deductible in the year of the transfer (subject to certain income limitations and assuming the donor itemizes).
Gift of a Fractional Interest in Real Estate
Federal tax laws let donors take a charitable deduction for gifts of fractional interests in real estate. This type of gift can be especially rewarding when you own a vacation home that you use only part of the year.
Example: Mary and Jim own a $300,000 vacation home that they use for only two months of the year. They can give our institution a 50% interest in the property, qualify for a tax deduction for the value of our interest in the property, and still have a right to use and occupy the property for up to half the year.
Transfer real estate or a remainder or fractional interest in the property to: LifeSpan Resources, Inc., (EIN 35-1306887), 33 State Street, 3rd Floor, P.O. Box 995, New Albany, Indiana 47151-0995, an Indiana non-profit 501 (c) 3; to further the mission of the organization without restriction as to use.
Check the Gift of Real Estate on the Legacy Society form here.
Gifts of Life Insurance
Life insurance is also an excellent tool for accomplishing philanthropic goals while realizing other important financial objectives. Life insurance may even allow you to make charitable gifts you never would have dreamed possible.
Making a gift of life insurance is quite simple. If you are the insured policy owner, you simply transfer physical possession of your paid-up policy to LifeSpan Resources, and file an absolute assignment or transfer of ownership form with your insurance company. Your company then will send a letter to us showing that we are the sole owner of the policy.
Hypothetical Example
Emmett owns a $100,000 life insurance policy with a cash value of $40,000. No further premiums are due and he no longer needs the coverage. He can ensure that we will receive $100,000 at his death by making us the beneficiary, or he can transfer ownership of the policy to us now. When he transfers ownership, Emmett receives an itemized charitable deduction equal to the lesser of his cost basis or the policy’s replacement value.
Another easy way to make a life insurance gift is simply to add LifeSpan Resources as a beneficiary on the policy. You can make a designation of a set dollar amount or a percentage of the benefit. For example, you can designate your children and a charity as beneficiaries. The benefit will be paid out according to your wishes.
Check the Gift of Life Insurance on the Legacy Society form here.
Other Gifts
Donor-Advised Fund
Make an irrevocable gift to a fund maintained by a charitable organization and enjoy an income tax charitable deduction for the full amount of the gift. As the name implies, you can advise the fund regarding distribution; however, you may not place material restrictions on the fund.
Note: LifeSpan Resources maintains a fund at the Community Foundation of Southern Indiana.
Revocable Living Trust
Create a trust that can be revoked or changed during your lifetime that directs the disposition of your assets, including charitable gifts. A revocable living trust can minimize the cost and delays associated with probate, facilitate asset transfer, provide privacy and, unlike a will, ensure asset management continuity in the event of disability.
Gift from an IRA
Transfer up to $100,000 (annual aggregate amount) directly from an IRA to LifeSpan Resources. The gift, available to those age 70½ or over, counts toward your RMD if one is due, and you pay no tax on the distribution.
Retained Life Estate
Donate a home and retain the right to live in the property for the rest of your life. Qualify for a current income tax charitable deduction for the value of our remainder interest in the home.
Charitable Lead Trust
Create a charitable lead trust that benefits us for a number of years, returns assets to your beneficiaries, and minimizes taxes.
Closely Held Stock
Donate closely held stock. You enjoy a charitable deduction equal to the appraised value of the stock with no capital gains tax due.
Tangible Personal Property
Donate gift property that can be used for our exempt purposes, and qualify for an income tax deduction for the full fair market value.
Check the box for Other Planned Gifts on the Legacy Society form here.
