Giving to Hospice
Through a Planned Gift
A planned gift is made through an estate plan (such as leaving a charitable bequest in your will or trust) or as part of an overall financial plan (such as creating a charitable trust). The opportunities available may allow you to make significant gifts with favorable tax consequences.
For example, you might be able to:
- make an outright gift using cash, appreciated securities or personal property. You would receive a tax deduction and avoid capital gains tax;
- name your hospice in a charitable bequest and defer the gift until after your lifetime;
- make a gift of your retirement plan by naming your hospice as the remainder beneficiary and avoid paying the twofold tax if you leave it to your heirs;
- give your hospice a life insurance policy with your hospice as the owner and beneficiary, so long as you make the premium payments you receive a current income tax deduction and your hospice will receive a significant gift after your lifetime;
- make a gift through a living trust by naming your hospice as the beneficiary;
- donate real property or sell it to your hospice at a bargain price and receive an immediate tax deduction and avoid capital gains tax;
- give your hospice your personal residence or farm, and continue to live there during your lifetime;
- create a charitable remainder trust that pays you an annual income for a number of years or during your lifetime; or
- create a charitable lead trust that pays your hospice an income for a number of years and then passes the assets to your heirs.
As you consider your estate plan, your first concern is to provide for your family members. But if your children are already financially secure, or if you don’t have any children, consider helping your hospice through a charitable bequest in a will or trust. This is the most common way for individuals to support your hospice and provides you with flexibility in your support. For example you may bequeath your hospice:
- a specific sum of cash
- a particular asset
- a percentage of your estate
Or, you may want to make certain a spouse or other survivor is provided for, thus you can make your bequest contingent - payable only after that person’s death
Of course you may always make your bequest in memory of/in honor of someone.
Your second concern is to make sure you have the appropriate documents. Depending on your specific circumstances, it may be necessary for you to have a:
Durable Power of Attorney
Trust that is
Revocable (also referred to as a “Living Trust”) or
Irrevocable (also referred to as a “Charitable Trust”)
Health Care Power of Attorney (also referred to as a “Living Will”)
To determine your needs, you should contact your attorney to discuss your specific circumstances.
To find out how you might be able to use any of these planned gifts, please contact Mike Wargo, Foundation VP/COO at (574) 243-2059 or firstname.lastname@example.org