Memorial Foundation
Planned Gifts
Bequests
Naming Memorial Foundation in a will is the easiest way for donors to create
a lasting legacy with a charitable gift. Donors can make an outright bequest
of specific assets or a general bequest of a certain amount or percentage of
an estate. Donors also can make a residuary bequest, which provides for family
and personal needs, then distributes remaining assets to Memorial Foundation.
In addition, donors may name the Foundation in a contingent bequest, which would
take effect if a donor’s heirs pass away before the donor does. Donors
also may direct a bequest to a specific area of interest. Assistance is available
on how to create a bequest document.
Charitable Gift Annuities
In exchange for an irrevocable gift of cash, securities or other assets, Memorial
Foundation agrees to pay one or two annuitants a fixed sum each year for life.
The older the annuitants at the time of the gift, the greater the fixed income
the Foundation can agree to pay. Since a portion of the gift will be used for
charitable purposes, donors are entitled to a federal income tax deduction in
the year the gift is made. A portion of each payment is tax-free, increasing
its after-tax value. Payments may be made annually, semi-annually or quarterly.
(Learn more about Charitable Gift Annuities
by reading these FAQs.)
Charitable Remainder Annuity Trust
A trust is a legal entity established and funded by the donor. The trust has the fiduciary responsibility to manage assets for a named beneficiary. Donors obtain tax benefits by irrevocably transferring assets to such a trust and naming the Foundation as the recipient of the remainder. In return, income is provided for the life of the donor and the life of a designated beneficiary (or a fixed term of up to 20 years, minimum 5 percent). At the beneficiary’s death or the end of the term, the trust terminates and the assets go to the Foundation. In addition to an income tax deduction, donors may receive increased income because the trust can sell appreciated securities free of capital gains taxation and reinvest the proceeds in higher yielding instruments.
Charitable Lead Trust
Donors can establish a lead trust to pay a fixed amount or a percentage of trust principal annually to the Foundation. This can reduce the donor’s estate tax liability significantly and ultimately transfer greater trust assets to named beneficiaries. With a charitable lead trust, Memorial Foundation receives income now, donors may receive an income tax deduction and donors can maximize their heirs’ inheritance.
Life Insurance
Gifts of life insurance are simple, secure, promptly paid, private and tax-deductible.
Donors who have a policy that is no longer needed to ensure a family’s
security can donate it and receive a tax deduction based on the cash surrender
value. If a donor continues to pay premiums, that amount is deductible. Upon
the donor’s passing, the full policy proceeds will go to Memorial Foundation.
Donors also can use life insurance as a wealth replacement plan. Contributions
of appreciated assets can replace the assets in an estate through the purchase
of a policy payable to a donor’s heirs. The premiums will be funded in
part by the tax savings from the charitable donation. If donors purchase a policy
naming the Foundation as an irrevocable beneficiary, the proceeds can be passed
on free of gift estate tax. Or, donors can name the Foundation as a contingent
beneficiary, with proceeds being passed on only if the primary beneficiary predeceases
the donor.
Endowments
Donors can endow annual contributions to Memorial Foundation with a gift equal to 20 times the annual gift amount in the form of a bequest, life insurance or life-income gift.
