Now that you have a basic understanding of the common planned giving terminology,

we can move to discussing the variety of planned giving vehicles,

and how they may be best applied in situations involving particular donors,

and the goals they seek to achieve.

A charitable request is a gift to charity that is made through your will or living trust.

While donor are alive,

donor retain complete control over their bequest assets.

Donor may revise or cancel their request any

time should their circumstances or desires change.

When their estate is settled,

the final form of their bequest will determine what the charity receives,

and what it may do with it.

Their estate will receive a federal estate tax deduction at the time,

as equal to the value of their gift which may save estate taxes.

One of the greatest appeals of the charitable bequest is that it is very flexible.

It gives the donor the opportunity to retain control of their assets while still

designating how the money they've accumulated throughout

their lifetime gets to be distributed upon their passing.

Ways a donor can define the amount of their bequest to charity are,

they can give a particular amount of money.

For example, the donor can put in their will or their trust,

I want to leave $25,000 to XYZ charity.

A gift of a specific item or items they may say,

I as a donor want to give 1,000 shares of my ABC Corporation stock to the charity.

It can be a gift that we are made only of one or more conditions are met.

For example, donor gives $25,000 to provide a particular heir is not still alive.

This can be sometimes referred to as a contingency bequest,

a gift that will be made from the remainder of their estate

once all other bequests debts and taxes have been paid.

For example, a donor gives 25% of the rest,

the residue, and remainder of their estate,

often called residuary bequest.

This approach assures that their family will be taken care of

before their estate makes a bequest to charity.

This also provides the donor additional flexibility

in knowing that the amount that's gifted to charity is proportionate,

based on the assets that they have left over.

So, if they have a $10 million estate,

you will get 25% of 10 million dollars.

If their estate decreases over time to $1 million,

then you would get 25% of one million dollars.

So, there's a little bit more of

a flexibility when somebody has a remainder interest okay to charity.

Sample bequests language is very important that their bequest be accurately and

clearly described so that we can carry out their wishes as they intended.

We encourage a donor to consult with us regarding

the terms of their request to make sure that we

will be able to carry out their intentions.

In addition to adding bequests their will or living trust,

here are a few other simple ways for a donor to make

a gift through beneficiary designations.

Make a charity a designated beneficiary of a life insurance policy.

Make a charity designated beneficiary of a retirement plan.

Instruct their bank to pay on death to charity,

some or all of a specific bank account.

Instruct their brokerage firm to transfer on death to

charity some or all of his specific brokerage account.

Benefits to a charitable bequest include,

the estate will qualify for

a federal estate tax deduction when it fulfills their bequest.

Their estate may save estate taxes as a result,

depending on the size of their estate and

their estate tax rules the time their state is settled.

The donor will keep control over their bequest assets

should the donor ever need them during their lifetime.

The donor will remain the flexibility to modify or cancel their gift anytime,

should their circumstances or desires change.

The donor will become a member of the legacy society or some society for

recognizing all of the charity's legacy donors.

And the donor will provide generous support to the charity.

The donor wants to defer a gift until after

his or her lifetime and maintain the flexibility to change his or her mind.

The donor controls his or her assets during life.

This is the only gift that costs a donor nothing during their lifetime.

So when working with a donor who demonstrates the desire to achieve these types of goals,

the charitable bequest would be the perfect response.

Charitable Bequests

Planned Giving

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