Bequests
David and Ann have been involved with charities for a number of years. Recently, they were introduced to some of the challenges faced by those charities involved with the ecology. They had found a rich source of information and discovered articles that reported on the basic elements of ecological research. Soon a personal passion for conservation and more information developed. They decided to support the charity through an outright gift of appreciated stock. It was later, after their experiences at the annual meeting, that they changed their will to include a bequest to magnify their support.
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Ann: "We felt good about helping initially. But we had no idea what this would lead to."
David: Over the years, we have met with some of the people involved who are on the front lines - doing the research. 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 for the world!"
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.
Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. 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 with the terms of use. The content in this Planned Giving section has been developed for Ecological Society of America and is owned by Future Focus. Please report any problems to section webmaster.