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What Our Donors Say

"My dad has Alzheimer's and we are pleased to send a contribution so that soon others won't be so lost to their families."

E.P., Florida
 
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Gift Planning

Ways to Give and Create a Lasting Legacy

Bequests

A bequest is a gift of property or assets to a beneficiary as defined in a will. There can be long-term tax benefits because charitable bequests can reduce estate taxes. In addition, there are the emotional rewards of knowing what a charitable gift means to the charity and how it can benefit society. There can be other tax benefits as well if the bequest involves appreciated assets.

A bequest may be designated to the American Health Assistance Foundation (AHAF) or one of our three programs:

  • Alzheimer's Disease Research
  • Macular Degeneration Research
  • National Glaucoma Research

Specific language (see bequest information) is used to effect a bequest. The examples provided here are for general information - please consult your attorney to make sure your wishes are properly carried out. There is some additional information available about the benefits of utilizing a charitable bequest and how bequests enable you to keep control of your assets.

A Living Trust is a trust set up to operate during the life (and can operate after the death) of the one setting up the trust. It can be revocable, or, in other words, you can change your mind and have some or all of the trust property returned to you during your life. An irrevocable trust cannot be changed except in certain legal circumstances (fraud, unlawful agreements, merger of interests, decision of the Court). Gifts may be made through a Living Trust upon the death of the trustor. See Living Trust for more information.

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Charitable Gift Annuities

Supporting the American Health Assistance Foundation (AHAF) with a Charitable Gift Annuity benefits both the annuitant and those suffering from age-related, degenerative diseases. AHAF offers an annuity program for each of our three programs:

  • Alzheimer's Disease Research
  • Macular Degeneration Research
  • National Glaucoma Research

A Charitable Gift Annuity is a way for people to transfer cash or other assets, such as stocks or bonds in exchange for a fixed payment for the rest of his /her life. The amount of each payment is determined by the age(s) of the annuitant(s) when the annuity is funded. Proof of age, such as a photocopy of a driver's license or birth certificate, is required to determine the payment rate. An annuity agreement is signed by the annuitant, and both the AHAF Treasurer and Secretary. This is a binding contract and the money cannot be returned. The payments may never be reduced or changed for life.

An annuity may be purchased for a single party (1 life) or two parties (2 life). For example, the two parties could be husband and wife, aunt and niece, or father and daughter (the possibilities are endless.) The percentage of return on a two-life annuity is based on the youngest party. A married couple will often choose an annuity to ensure that both parties will enjoy a steady income for life.

The minimum amount for funding a gift annuity with the American Health Assistance Foundation or one of its three programs is $5,000 and the minimum age to fund a gift annuity is 55 years old.

The annuitant has the option to receive payments annually, semi-annually, quarterly, or monthly.

In the year the annuity is funded, the annuitant is entitled to an income tax deduction for a portion of the entire amount of the annuity. If you are unable to utilize the entire amount as a deduction in the year you funded your annuity, you may carry forward the unused amount for up to an additional five tax years, as long as you claim the maximum allowable amount each year. A Charitable Gift Annuity is a good, sound investment as the annuitant receives:

  • Guaranteed lifetime income
  • The option of receiving payments annually, semi-annually, quarterly or monthly
  • Income tax benefits
  • Fixed annuity payment rates

If you would like to learn more, complete the Annuity Prospect Form, send it to AHAF, and we will provide you with a personalized annuity proposal. OBTAINING A PROPOSAL DOES NOT ENTAIL AN OBLIGATION TO PURCHASE AN ANNUITY. You are also welcome to contact Diana Campbell at 1-800-437-2423.

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Charitable Remainder Trusts

A Charitable Remainder Trust is established for the life of the donor (also trustor or grantor) and/or for the life of any beneficiary(-ies) and is irrevocable. While there are certain changes that may be made, once the trust is established, it cannot be revoked. If it is desired, the income period of the trust can be established for a specified period of time not to exceed twenty years. The twenty-year maximum does not apply if the trust life is based on the life expectancy of the income beneficiary(-ies).

A charitable remainder trust is an attractive planning tool for the disposal of highly appreciated assets. While the assets revert to the charity rather than the heirs of the estate, the use of an irrevocable life insurance trust in conjunction with a charitable remainder trust could replace the asset's value for the heirs.

There are two different types of charitable remainder trusts.

A charitable remainder unitrust (see example) is a popular way to achieve tax benefits as well as a fixed annual percentage on the value of the assets in the trust. The assets are revalued annually and, if the trust value changes, the payment to the beneficiary(ies) changes.

A charitable remainder annuity trust is set up to pay a fixed rate of return based on the initial valuation at the time the property is placed in the trust. The trust assets are never revalued.

Charitable Remainder Trusts provide a good degree of flexibility that is valuable in charitable gift planning. For example, a variation on remainder trusts can be an effective way to make gifts of real estate. A graphic example of a charitable remainder trust is available.

Charitable Lead Trusts

A charitable lead trust is often called the reverse of a charitable remainder trust. During the term or life of the charitable lead trust, an annuity or unitrust income interest is distributed each year to the designated charitable beneficiary and the assets are eventually transferred to the trustor's or grantor's designated non-charitable beneficiary(ies).

The Charitable Lead Trust (CLT) is a powerful way to make a future transfer of assets to your heirs at a significantly reduced gift and estate tax cost, while also providing AHAF with income. During a specified number of years, the lives of one or more individuals, or a combination of the two, a contribution is paid to AHAF. A lead trust may be structured to provide a fixed dollar contribution annually (CLAT) or a fixed percentage contribution (CLUT). At the end of the trust term, the assets pass to the beneficiaries the donor's name. The donors choose the trustee.

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You can fund a charitable lead trust with cash, publicly traded securities, closely-held stock, income-producing real estate, partnership interests, or a combination of the above. You can establish a CLT during your lifetime, or as a testamentary trust through your will.

There are two basic types of Lead Trusts: Non-Grantor and Grantor.

  • In a non-grantor charitable lead trust, the most common type, the trust assets revert to your children, grandchildren, or other heirs at the end of the trust term. A non-grantor CLT provides a gift tax charitable deduction and is useful in reducing the cost of intergenerational wealth transfers.
  • In a grantor charitable lead trust, the trust assets revert to you, rather than to your heirs, at the end of the trust term. Donors creating grantor CLTs receive a large charitable contribution income tax deduction. Such a gift structure may be particularly useful if you wish to make a multi-year pledge and accelerate future deductions into the current year.

Donors establishing a CLT should be advised by an attorney who is experienced in the area of charitable trusts and estate planning. Please contact us by phone or e-mail so that we can assist you or use our response/request form.

Gifts of Real Estate

Depending on the circumstances that are involved, gifts of real estate can be an effective means of planning a gift.

For information on making a gift of Real Estate to AHAF, or one of its programs, please contact Barbara Spitzer at 1-800-437-2423 ext. 138.

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Gifts of Life Insurance

Life Insurance is usually purchased for the protection of one's family to minimize financial loss caused by the death of a family member. Many of our donors are discovering that a gift of life insurance to AHAF, or one of its programs, can be a very meaningful gift.

Gifts of Existing Policies
To make a gift of an existing policy, contact your insurance agent to obtain the necessary form to make AHAF the irrevocable owner and beneficiary of the policy. If the policy is paid up and AHAF, or one of its programs, is made the irrevocable owner and beneficiary, the donor is then entitled to a charitable deduction for income tax purposes for the "replacement value." The replacement value is what it would cost to purchase an identical policy, given the donor's age and medical condition. If the policy given to AHAF is not paid up, any premiums that are thereafter paid by the donor will be deductible. Future premiums are billed to AHAF and the donor makes an unrestricted gift to us to cover the cost of the premiums. If the donor does not wish to continue to make future premium payments, AHAF will likely surrender the policy for its "Cash Surrender Value".

Gifts of New Policies
Premium payments on new policies are deductible when AHAF is named as the irrevocable owner and beneficiary of the policy. Premiums are billed to AHAF and the donor of the policy makes an unrestricted gift to us equal to the premium due. AHAF will use the gift to pay the premiums. AHAF will let all policies lapse if gifts are not received on a timely basis to cover the premiums due.

Making the Charity a Beneficiary of your Life Insurance Policy
You may wish to make the charity the beneficiary (or a contingent beneficiary) of a life insurance policy as a way to make a sizeable future gift. You retain lifetime ownership of the policy, keeping the right to cash it in, borrow against it, and change the beneficiary. A gift of this nature is treated much like a bequest made through your will. Because you retain the ownership of your asset (the policy), you will not receive an income tax charitable deduction for this future gift or for your premium payments during your lifetime. The policy's proceeds will be included in your gross estate, and your estate can take an estate tax charitable deduction.

IN ALL CASES, YOU SHOULD SEEK THE ASSISTANCE OF YOUR INSURANCE AGENT TO MAKE CHANGES OF OWNERSHIP AND BENEFICIARIES, DETERMINE REPLACEMENT VALUE OR SURRENDER VALUE AND MAKE SURE THAT ADEQUATE COVERAGE REMAINS AFTER MAKING A GIFT

For more information or to contact us with your intentions for gift planning, please contact Barbara Spitzer at 1-800-437-2423 ext. 138.

Gifts of Retirement Assets

Contributions to retirement plans can provide an excellent opportunity for growth, as they grow tax-free, meaning that the growth or earnings are not taxed annually but can continue to grow pre-tax. The earnings are taxed when they are withdrawn, but this has allowed more dollars to be invested for more growth. Additional savings can occur if the recipient is in a lower tax bracket when the funds are withdrawn (for example, during retirement) than when the investments were growing.

However, careful planning concerning the withdrawals from retirement funds needs to be done. Not only is there a potential income tax burden, but if there is a balance in your retirement account at your death, there may be estate taxes as well. Estimates are that taxes could eat up as much as 75-80% of retirement assets under certain circumstances.

Using qualified retirement plan funds is an excellent source of assets to fund bequests. By designating the American Health Assistance Foundation as a beneficiary (it can be a contingent beneficiary after the death of a spouse - see sample bequest language), funds pass to AHAF free of taxes. It is possible to set up the charitable beneficiary as the recipient of the entire remaining funds in the account or establish a percentage to fund the bequest.

Please note - the designation of AHAF as a beneficiary of retirement fund assets cannot be simply written in your will or trust. the American Health Assistance Foundation must be designated as a beneficiary of the retirement plan.

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Disclaimer: Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this planned giving section signifies your agreement with the planned giving section terms of use. The content in this Planned Giving section has been developed for the American Health Assistance Foundation and is owned by Future Focus. Please report any problems to section webmaster.
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