Planned Giving

 

Planned giving serves as a viable alternative for individuals who are unable to donate a large sum of money during their lifetime as a result of family or other financial obligations.

 

Whereas the benefits of an outright gift can be derived immediately, a planned gift is a charitable contribution that is realized by the hospital in the future, usually upon the death of the donor.

 

Another benefit of this alternative is that, while making a substantial contribution, donors can still provide for, and sometimes even enhance, their own financial security and that of their loved ones. In addition, planned giving offers a substantial benefit to the donor in the form of tax deductions, professional management of assets and increased income.

 

Following are planned giving options available to CRMC Foundation donors:

 

Bequest

A bequest — a charitable gift left to the CRMC Foundation through a person’s will — is the most common method of leaving assets to a charitable institution. An individual can leave a specific amount of money, a specific piece of property, a percentage of his or her assets, or what’s left after providing for loved ones. Giving a percentage of one’s assets is popular because it allows for fluctuations in the value of the estate.

 

Revocable Living Trust Agreement

A revocable living trust agreement provides for an eventual gift that can be revoked at the request of the donor during his or her lifetime. The donor receives no income tax deduction for the gift. However, savings can be realized in the form of an estate tax deduction for the amount passing to the CRMC Foundation at the time of the donor’s death. This type of planned gift offers a risk-free way to arrange for a charitable gift while still retaining the right to use the assets should the need arise.

 

Charitable Remainder Annuity Trust

A charitable remainder annuity trust allows an individual to make gifts while still providing economic security for them and their loved ones. This option allows a donor to transfer assets to a trust, from which payments are made to the donor and/or his designees. When the trust period concludes, the assets remaining in the trust become the property of the charitable institution.

 

Some of the benefits to a donor can include increased income from low-yielding assets, the reduction or elimination of estate, capital gains and gift taxes, and the diversification of investment assets. The charitable remainder annuity trust provides a fixed income based on the value of assets at the time the trust is created.

 

Charitable Remainder Unitrust

A charitable remainder unitrust offers the same benefits as the charitable remainder annuity trust. However, it pays a fluctuating income based on a fixed percentage of the trust’s annual value.

 

Charitable Lead Trust

A charitable lead trust allows a donor’s gift to provide immediate income for charitable purposes. It allows the individual to pass assets to his or her heirs at a reduced cost to the donor upon the termination of the trust. Charitable lead trusts have been used to pass substantial wealth from generation to generation.

 

Life Estate Agreement

A life estate agreement allows for a gift of real property such as a house, farm, or acreage. Under a life estate agreement, the donors may continue to live in and use the property for their lifetimes. The owner continues to be responsible for upkeep, insurance and taxes on the property and is entitled to any income it generates. The owner may take a tax deduction in the year of the gift equal to the value of the “remainder” interest. At the time of death, the real property transfers immediately to the hospital.

 

If you have questions about planned giving, contact the CRMC Foundation by calling (931) 783-2003 or by email at jbell@crmchealth.org.