Page 21 - BusinessWest 2022 Senior Planning Guide

Philanthropy and Estate Planning
Ten Smart Ways to Include a Charitable Gift in Your Plan
IBy Kylie Johnson, CAP
n a 2016 study by Fidelity Charitable, 92% of wealthy donors shared that they considered their charitable giving equal to or more important to them than
other financial priorities. What was interesting is that about half of these donors still relied on cash, checks, or credit cards to make their gifts. Despite having most of their wealth tied up in non-cash assets such as real estate, retirement assets, or stock, these donors knew little to nothing about the full range of giving options available to them.
Charitable giving can actually be a highly effective means to achieve personal, financial, and philanthropic goals at the same time. There are numerous ways to solve for a goal by turning assets into charitable gifts, all of which offer potential tax advantages and other benefits to the donor. Best of all, these ways to give enable donors to provide meaningful support for the charities they care most about.
1. Make a gift without giving up
assets now.
A gift in your will or trust is a simple way you can make a difference. Most charities will provide you sample bequest language to share with your attorney and will partner with you to ensure the gift supports what matters most to you.
Another option is a beneficiary designation, for a
percentage of a retirement account, life-insurance policy, commercial annuity, or investment or bank account. Bequests and beneficiary designations are popular for a reason — you retain control of your assets and have the joy of knowing your gift will make a difference in the future. You may be able to make a much larger impact than you could in your lifetime.
2. Simplify your financial affairs by
making a gift.
Tired of maintaining a vacation home that your adult children no longer visit? An outright gift of that vacation home could free you from maintenance costs, property taxes, insurance, and other ongoing expenses while providing you with an income-tax deduction, and you will avoid capital-gains tax on any appreciation in value. In addition to these immediate tax benefits, you
also relieve your family of the burden of dealing with the sale of real estate after you pass away. Plus, you make a meaningful impact for a charity you love.
If you hoped to have some of the value of the vacation home pass to your heirs as well as to charity, you could gift the vacation home to a charitable trust and sell it within the trust to generate an income stream for your heirs. At the end of the trust’s term, the remainder value will support the mission of a favorite charity.
3. Increase your income.
You and/or a loved one can receive a stable stream of income for life and have the joy of knowing your
Giving
Continued on page 42
“Charitable giving can actually be a highly
effective means to achieve personal, financial, and philanthropic goals at the same time. There are numerous ways to solve for a goal by turning assets into charitable gifts, all of which offer potential tax advantages and other benefits to the donor.”
Turn Your Gift
into Income
for Life
Want to support lifesaving care and diversify your retirement income?
Baystate Health Foundation Charitable Gift Annuities provide you with an immediate tax deduction and steady stream of income for life – starting now or in the future.
Support yourself and/or loved ones and receive stable, secure income not subject to market fluctuations – plus the joy of knowing your gift will support the area of Baystate Health that matters most to you.
How it works: Avery, age 72, would like to receive stable income
and support lifesaving cardiac care. If she makes a gift of $10,000 in appreciated stock to Baystate Health Foundation today, she receives an immediate charitable deduction of $4,630.20 and $550.00 a year for life. Or, if she defers payments until she turns 77 when she anticipates needing increased retirement income, she can receive an immediate charitable deduction of $5,841.80 and $750.00 a year for life. For both options, she reduces her capital gains tax, reduces exposure to market fluctuations, and makes an impact.*
For options and rates specific to you, reach out to Kylie Johnson at 413-794-7789 or [email protected] or visit: PlanMyGift.BaystateHealth.org/Pay-It-Forward
CGA Rates*
* Based on a $10,000 cash gift using the IRS Discount Rate of 3.6% for July 2022. The information presented is not intended as legal or tax advice.
Age
Rate of Return
Annual Income
Charitable Deduction
65
4.80%
$ 480
$ 4,051
70
5.30%
$ 530
$ 4,423
75
6.00%
$ 600
$ 4,818
80
7.00%
$ 700
$ 5,196
85
8.10%
$ 810
$ 5,720
90
9.10%
$ 910
$ 6,402
BaystateHealth.org
CS14132
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