Wills and Bequests
Fred and Elaine in this examle originally established a fund that would
help purchase needed 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 and seeing their gift at work, that they changed their
will to include a bequest that will magnify the fund tenfold.
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
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.
Fred and Elaine found their experience enriched their hearts and lives. Often
donors are surprised by just how wonderful the giving experience is.
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 site signifies your agreement
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