Planned Giving Made Simple to Support Bancroft NeuroHealth
There are many ways you can support Bancroft NeuroHealth, both during your lifetime and through your estate plans. Some of these options are summarized below. It is a good idea, however, to consult an estate planning professional who can evaluate your circumstances and create or update a plan that is appropriate for you.
We at Bancroft NeuroHealth would be happy to discuss your planned giving options with you or to assist you in selecting a qualified estate-planning professional. For more information, please contact the Bancroft Development Office at (856) 429-5637, ext. 140.
The following are some of the giving options:
- Remembering Bancroft NeuroHealth in Your Will
- Planning Through Beneficiary Designations
- Gifts that Pay Income
How can a bequest be left to Bancroft NeuroHealth?
You may name Bancroft NeuroHealth as the beneficiary of a percentage of
your estate, or a set dollar amount, or of a particular asset. Your estate
is entitled to an estate-tax deduction for the full value of your bequest
to Bancroft NeuroHealth. If you wish to benefit Bancroft NeuroHealth through
your will, your attorney can discuss with you the best way to do this.
How is Bancroft NeuroHealth designated for a bequest?
A detailed designation is preferred: Bancroft NeuroHealth is a not-for-profit
tax-exempt organization, having as its principal address Hopkins Lane, Haddonfield,
New Jersey 08033.
Planning Through Beneficiary Designations
Many estate assets are not transferred through a will. These include assets
in your living trust, your qualified retirement plans at your death, and
the proceeds from your life insurance policy. You may name Bancroft NeuroHealth
as a beneficiary of any of these assets, or as a contingent beneficiary
in the event that the loved one you named as primary beneficiary is no longer
living.
Living Trusts
Some individuals establish living trusts to provide for the current management
of assets or for the future management of assets, should they become incapacitated.
Bancroft NeuroHealth may be named as a beneficiary of your living trust.
Qualified Retirement Plans (IRA, SEP, Keogh, or Other)
Naming Bancroft NeuroHealth as a beneficiary of assets remaining in your
qualified retirement plans after your lifetime is considered particularly
wise tax planning.
The reason is that retirement plans left to individuals other than a spouse are taxed more heavily than most other assets. However, estate and income taxes are avoided if a non-profit organization, such as Bancroft NeuroHealth, is named as the beneficiary. Bancroft generally will receive 100% of your plan assets.
Life Insurance Policies
Designating Bancroft NeuroHealth as a life-insurance beneficiary is a simple
and often-used way to both support Bancroft's programs and services and
to gain tax advantages.
Individual Policies: You may irrevocably name Bancroft NeuroHealth as owner and beneficiary of a long-standing life-insurance policy, or you may retain ownership and merely name Bancroft NeuroHealth as the beneficiary. If you choose to name Bancroft NeuroHealth as both owner and beneficiary irrevocably, you will receive an immediate income-tax deduction for the lesser of your cost basis or the current value of the policy.
Group Policies: If you are employed, you may be receiving group term life insurance as an employee benefit. If so, Bancroft NeuroHealth can be named as a beneficiary of the entire policy or as the beneficiary only of the amount that exceeds $50,000.
Gifts that Pay Income
Charitable Remainder Trusts
These trusts allow you to make a gift to Bancroft NeuroHealth that will
enable you and/or others to enjoy enhanced income for your lifetime(s) or
a specified term of years. You choose the payout percentage you wish to
receive (not less than five percent). When your trust terminates, Bancroft
receives the remaining principal.
There are two types of charitable remainder trusts:
- 1. Charitable remainder annuity trust - you receive a set dollar amount each year, equal to your chosen percentage of the trust's original fair-market value.
- 2. Charitable remainder unitrust - each year, you receive a variable amount, equal to your chosen percentage of the changing yearly value of the trust. Over time, a unitrust may allow some hedge against inflation.
Many types of assets can be used to fund charitable remainder trusts. These include:
- Cash
- Appreciated securities, real estate or collectibles
- Life insurance policies you plan to sell (viaticate)
- Municipal bonds
What are the benefits to you?
Substantial tax advantages are available through the use of charitable remainder
trusts.
A charitable remainder trust can sell appreciated assets that you donate, without incurring the capital gains or income tax that would ordinarily be due on a sale. In other words, the full proceeds from the sale can be reinvested for your benefit. If you were to sell the assets yourself, the tax that would be payable on the sale could substantially reduce the principal available for reinvestment.
Your gift also generally entitles you to an immediate income tax deduction.
For gifts of cash, or of stock or real estate you have owned more than a year, your deduction is equal to a percentage of your gift's fair-market value.
