A planned gift as part of estate planning can be a lasting tribute supporting advancements in research for a brain cancer cure. Estate planning offers the opportunity to evaluate and prioritize your financial legacy. Though planning for the future may be a challenging task, focusing on the impact you will create beyond your lifetime can make the experience a rewarding one. Once you have provided for loved ones in your will or living trust, you may want to include a gift of money, stock or personal property to ABC2. Your gift will be a lasting tribute supporting advancements in research to accelerate the development of new, effective treatments for brain cancer.
By incorporating ABC2 into your will or living trust, you ensure your annual support and intentions to elongate the lives of brain cancer patients are continued. There are many ways to include ABC2 in your estate planning.
Planning Through a Will or Living Trust
Adding ABC2 to your will or living trust takes just a simple designation and will likely not affect your cash flow during your lifetime. Should your situation change, it is also easy to modify.
Charitable bequests are typically prepared through a will: a legal document specifying how an individual's estate is to be distributed after their death. Some individuals use a living trust, also know as a revocable trust, as their estate document instead of a will. A distribution from a living trust works the same way as a bequest provided by a will delivering a gift to ABC2, and it produces the same tax consequences for you, the donor.
You can make a bequest to ABC2 of a percentage of your estate (a residuary bequest) or a specific dollar amount (a specific request). Using a contingent beneficiary designation, you can also gift assets to ABC2 that you have designation for a loved one if that person is no longer living at the time of your death. Many individuals establish endowments that honor the memory of a family member or another loved one. These endowments supporting ABC2 are evergreen since only the income they generate is used annually. There may come a time when you will need to update your will. When you do this, we hope you will consider including a bequest to ABC2.
Planning Through Beneficiary Designations
Certain assets are not distributed through a will. You may name ABC2 as a full, partial or contingent beneficiary of these assets.
Qualified Retirement Plans and Other Accounts
Naming ABC2 as the beneficiary of your IRA, 401(k) or other qualified plan allows the remainder of your plan to pass to ABC2 tax-free. Such plans left to heirs other than a spouse are taxed more heavily than many other assets. For example, your retirement fund can be taxed up to 70% if passed on to heirs. You may avoid these taxes by designating ABC2 as the beneficiary, typically granting the charity to receive 100% of the designated assets. This facilitates you dividing assets by favorably designating lower-taxed gifts to heirs. Much like bequests, you may update your beneficiary at any time, and can continue to make withdrawals during your lifetime.
You can also make ABC2 the "payable on death" beneficiary of a bank account, brokerage account or certificate of deposit. Your financial institution can assist you with this simple process.
Life Insurance Policies
Another opportunity for giving includes naming ABC2 as the full, partial or contingent beneficiary of your paid-up life insurance policy. Similar to retirement account beneficiaries, gifting a life insurance policy is an often useful way to gain tax advantages. When you name ABC2 as owner and beneficiary of a policy, you will receive an immediate tax deduction for the original amount invested or the fair market value, whichever is less. You can call or write to your insurance company to request a form to make this change of beneficiary.
Didn't see a planned giving gift option that meets your estate planning goals? We would appreciate the opportunity to discuss your specific needs at your convenience.
Please contact Donovan Trott at 202-419-3140.
Opportunities shared here do not constitute legal or financial advice. We encourage you to consult your own advisors before deciding what is best for you and your family. Please note that due to the evolving nature of brain cancer research, our programs may change based on advancements made in these areas. Therefore, planned giving created for specific programs will need to be thoroughly evaluated to ensure original donor intention is achieved.