Serving young children with visual impairments
and their families since 1938
As you consider your investments for the future, we hope you will also consider The Blind Childrens Center as an appropriate investment. Not only can we put your gifts to good use, we can also save you tax dollars through the charitable deduction and the avoidance of capital gains. In some cases we can even increase your current income (by reinvesting your assets through a charitable remainder unitrust or annuity trust). Planning for the future can benefit you, your estate, and your favorite charity.
We have included five of the best planned giving opportunities here for you.
1. GIFTS THROUGH YOUR WILL OR LIVING TRUST
If your estate is subject to the federal estate tax, a charitable bequest can save significant tax dollars. A charity can be named as a beneficiary in your will or living trust in a number of ways.
In an OUTRIGHT BEQUEST you can specify an outright gift of cash, securities, real estate or tangible personal property. If you bequeath dollars, you may wish to bequeath a certain percentage of your estate to the charity, rather than a fixed sum; this serves as a hedge against both inflation and unforeseen shrinkage, and assures your heirs of their proportionate share.
A RESIDUAL BEQUEST provides that, after specific bequests are made to named individuals, the charity receives the amount remaining in the estate.
A CONTINGENT BEQUEST means that the charity will receive certain assets only if a named individual does not survive you. For example, you could provide for The Blind Childrens Center to receive a bequest only if your spouse does not survive you. Such a provision recognizes the need to first provide for the security of your family.
GIFTS IN TRUST can provide income for another person or persons for life, with the principal ultimately passing to a charity. In the alternative, you could designate the income to the charity for a certain number of years and the principle ultimately passes to family members or others.
A CODICIL OR TRUST AMENDMENT If you already have a valid, up-to-date will or living trust, you can have your attorney prepare a simple codicil or amendment naming a charity as a beneficiary, without having to rewrite your entire will.
2. GIFTS OF LIFE INSURANCE
Life insurance provides an excellent means for making a charitable gift. This can be done by either purchasing a new life insurance policy or by contributing a policy which you currently own but no longer need. A charity can be designated as the beneficiary of the policy, while you retain the right to change the beneficiary at a later date, and otherwise retain your ownership of the policy. In this instance, no current federal income tax charitable deduction is available to you since you would be the owner of the policy. However, at the time of your death, your estate would receive a charitable deduction when the proceeds of the policy are paid to the charity.
To receive a current federal income tax charitable deduction, you would need to designate the charity as both the owner and the beneficiary of the life insurance policy. When such a gift is made, the deduction will be approximately equal to the cash value of the policy at the time of the gift. Many donors decide to continue to pay the premiums on the policy after the gift is made, in which case the additional premium payments will be tax deductible each year.
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