Planned Giving

Financial Planners Increasingly Promote Charitable Trusts

The recession is creating optimum conditions for wealthy donors to set up charitable trusts as a way to give money and also shelter income from estate taxes, recently reported in The Wall Street Journal.

Assets, including cash, stocks, and art, can be transferred to a “charitable lead trust” for a set numbers of years, during which payments are made to a designated charity or charities. When the term expires, the remainder of the trust goes to heirs. Because the assets are not part of the donor’s estate, any appreciation is not subject to estate taxes.

Estate planners say low interest rates and depressed asset values make the trusts more attractive. The so-called “hurdle” rate, which the Internal Revenue Service uses to predict the growth of assets in such trusts, is at a historic low of 2 percent; gains beyond that rate, which is locked in for the life of the trust, can generally be passed on to heirs tax-free, the Journal notes.

Planned Gifts

You can provide for the Maryland Affiliate of Susan G. Komen for the Cure® in a variety of ways, including through your estate. Planned or deferred gifts enable Komen Maryland to plan for the future because they will be realized at some later date. You can make a planned gift by naming Komen Maryland as a beneficiary in your Will or by naming Komen Maryland as owner and beneficiary of a paid-up life insurance policy. A gift of life insurance entitles you to a tax deduction equal to your cost basis in the policy or its replacement cost, whichever is less.

You can make a planned gift to the Maryland Affiliate of Susan G. Komen for the Cure and receive an income for life through the establishment of a charitable trust that names Komen Maryland as a beneficiary. Your attorney can advise you of the various types of charitable trusts and the estate tax benefits of each, and assist you in setting up a planned gift that is tailored to your personal needs. You may also want to talk with your attorney or financial advisor about the tax benefits of naming Komen Maryland as a beneficiary of your retirement plan.

Bequests

One of the easiest ways to make a gift to the Maryland Affiliate of Susan G. Komen for the Cure is by leaving Komen Maryland a bequest in your Will. There are several ways you can do this. You can (1) give a specific amount of money to Komen Maryland; (2) give a specific item of property to Komen Maryland; or (3) give a specified percentage of the residue of your estate to Komen Maryland (the residue of your estate is that which is left over after all specific gifts have been made, whether charitable or non-charitable). Since we cannot predict future medical advances, we recommend that your bequest be for unrestricted purposes or be directed generally to research.

The following simple language can be used to make your gift:

"I give and devise to the Maryland Affiliate of Susan G. Komen for the Cure® , or its successor, the sum of _________ Dollars ($_________) to be used for such charitable purposes as the governing body of the Maryland Affiliate of Susan G. Komen for the Cure® deems appropriate; provided, however, that at the time of such gift, the Maryland Affiliate of Susan G. Komen for the Cure® or its successor, must be a charity as described in Sections 170(c) and 2055(a) of the Internal Revenue Code."

OR

"I give and devise ________ percent (________%) of my residuary estate to the Maryland Affiliate of Susan G. Komen for the Cure® , or its successor, to be used for such charitable purposes as the governing body of the Maryland Affiliate of Susan G. Komen for the Cure® deems appropriate; provided, however, that at the time of such gift, the Maryland Affiliate of Susan G. Komen for the Cure® , or its successor, must be a charity as described in Sections 170(c) and 2055(a) of the Internal Revenue Code."

A bequest may be included in the body of a will or as an amendment (codicil). Gifts made through a bequest typically provide an estate tax deduction. Please consult your attorney and/or financial advisor for specific information.

The Maryland Affiliate of Susan G. Komen for the Cure
200 East Joppa Road, Suite 407
Towson, MD 21286
410-938-8990
Contact our Development Director at lkoors@komenmd.org

IRS EIN Numbers
Local: 52-2053491
National: 75-1835298