Planned Giving

Wills and Bequests

Perhaps the worst word ever heard in probate is intestate, dying without a will. Dying intestate prolongs the distribution of assets and in some cases precludes heirs from benefiting from a decedent's estate. Dying intestate empowers the state in which the person died to distribute the assets of the person who died according to the laws of that state.

Everyone should have a will. If you have not written a will yet, regardless of your charitable intent, please consider this for it is a gift to your loved ones. A will ensures that assets are distributed as planned, and that other property is passed on per the decedent's wishes.

David and Ann originally established a fund that would help purchase needed exercise equipment, supplies, and provide for maintenance. They had made an outright gift of some appreciated stock. It was later, after their experiences with the staff, that they changed their will to include a bequest that will magnify the fund tenfold.

Ann: "We felt good about helping through establishing a small fund. But we had no idea what the fund would bring to us."

David: Over the years, we have met with some of the people involved who are on the front lines - doing the work. We've even been able to help a little ourselves. I can't describe how good it feels to sit with these people, to hear them describe their dreams and ambitions and how we've helped. What a joy to realize that we have become a part of their future and that these people have literally become a part of our family."

Ann: "I feel like we really have accomplished something good!"

Setting all the emotional rewards aside, this was a wise financial move. First, there were some immediate tax benefits on the initial gift based not on the cost of the stock, but on its appreciated value. Second, their estate will benefit by having a write-off to charity through the bequest (see bequest information).

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.

Using funds from a retirement account to make bequests is often a good strategy. If there is a balance in your retirement account at your death, not only is there a potential income tax burden, but there may be estate taxes as well. Estimates are that taxes could eat up as much as 70-75% of retirement assets under certain circumstances. Careful planning concerning retirement funds needs to be done. Some additional information regarding retirement assets is available.

Another option to consider in making a gift is to use life insurance policies that are no longer needed or necessary. There are some different ways to make a gift of life insurance.

Ann and David found their experience enriched their hearts and lives. Often donors are surprised by just how wonderful the giving experience is.

Now click here to meet Joyce.

For more information on planned giving opportunities, contact the Homewood Foundation at 1-800-559-CARE or direct email questions to foundation@hmwd.org.