Create a Legacy through Planned Giving
What will your Legacy be?
We all desire significance – to lead happy and fulfilled lives surrounded by family and friends. And for many of us there is a compelling need to make a difference – to leave the world a better place by the choices we make. This search for significance and desire to make a difference leads many to ponder what their legacy will be. A planned gift is perhaps the most tangible way to leave a lasting impact on the people and the work of organizations that mean the most to you. A planned gift to The Whole Person (TWP) may also be an effective way to increase the value of the estate that is left to your heirs by lessening the tax burden on your estate through a charitable gift.
A will may be used to leave a bequest to The Whole Person with a simple statement directing that specific assets or a percentage of the estate will be transferred to the charity upon the donors’ death. Donors need not part with any assets during their lifetime but may make provisions to support their favorite charity when the funds are no longer needed.
If you have a policy that is no longer needed to provide protection for loved ones, consider making a gift of its accumulated value to The Whole Person. You may also take out a new insurance policy tax deductible yearly premiums during your lifetime – and the death benefit will be much more than the accumulation of the monthly gifts.
Retirement plan and IRA
You can designate The Whole Person as the final beneficiary of funds remaining in your retirement plan or IRA after your death. Giving in this manner can help maximize tax savings on your estate – sometimes as much as 75 cents on the dollar.
Charitable Lead Trusts
You can make charitable gifts that provide immediate funding to The Whole Person for a period of time before benefiting you or your loved ones. If you wish to temporarily delay an inheritance in a way that helps reduce estate and gift taxes while funding charitable gifts, the lead trust may be an appealing addition to your estate plan.
A “Planned Gift” can benefit you and The Whole Person
Planned giving allows donors to leave a Legacy while taking advantage of tax savings and other benefits. The benefits of planned giving include:
- Increase current income because of reduced taxes
- Reduce current income tax
- Increased assets because of reduced estate tax costs
- Avoid capital gains tax
- Increase charitable donations
- Build a legacy while protecting your financial future
Some planned gifts are structured to provide immediate benefits to the non-profit organization while others provide deferred benefits (at a later time) to the organization. Other gifts are structured with a mixture of methods so that a current outright gift with a deferred gift can more readily achieve the donors’ philanthropic and financial objectives. We suggest that if you are considering a planned gift that you consult your tax or legal advisor so that you can maximize the benefits and achieve your goals.
The Whole Person is grateful for any gift
Gifts of cash are the simplest and most common. A one-time gift or payments on a pledge over a specific timeframe are acceptable. If you are 70 ½ years old and must take income payments from an IRA, you may gift a portion and not have to claim the income but receive the full tax deduction.
Publicly traded stock can be sold immediately by the non-profit organization. The donor can claim the appreciated value of the stock as a charitable gift but not have to claim that appreciated value as income.
Real Estate/Other Personal Property
The Whole Person requires Board approval before accepting gifts of real estate. Our acceptance is predicated on the ability to sell the property quickly. Gifting appreciated property entitles the donor to a charitable deduction equal to the current fair market value and because the non-profit organization owns it when sold, the donor is not liable for capital gains taxes. Planned Giving Can achieve your goals and help TWP.
Charitable Remainder Trusts Charitable Remainder Trusts make periodic payments to one or more individuals for life or for a term of years. Upon termination of the trust, the assets remaining will be given to the charitable organization(s) you have specified.
Tom and Mary leave $2,500,000 to their heirs upon their death.
- Their heirs receive approximately $2,200,000 at death.
- IRS/Missouri/Kansas receive approx. $300,000.
Dan and Laura set up their $2,500,000 estate as follows:
- $1,750,000 to their heirs at death.
- $750,000 in a Charitable Lead Trust.
- Heirs receive $1,750,000 at death and $750,000 after 20 years.
- IRS/Missouri/Kansas receives $0.
- Charity(s) receives $45,000 annually for 20 years.
The benefits to you:
- Income to you while still making a significant gift to TWP
- Income tax savings if established during your lifetime
- Possible estate tax savings, thereby increasing the amount left to your heirs
- Partial or complete bypass of capital gains tax when you fund the gift with appreciated property. In order to achieve your financial goals through planned giving, we suggest you consult your financial advisor to discuss your needs and your desire to leave a legacy of independence and support for people with disabilities.
Sample ‘legal’ language for a bequest to TWP:
“I give to The Whole Person (TWP), an Missouri not-for-profit organization FEIN# 43-1157083, the sum of $ _______amount or # % of the residuary estate to be used where the need is greatest to support independent living services. If the stated use becomes impossible or impractical, the Board of Directors and staff of TWP can determine an alternate use.”
If you have already or are in the process of leaving a planned gift to TWP please inform us so that we can acknowledge and thank you in your lifetime.
Chief Marketing Officer
The Whole Person, 3710 Main Street, Kansas City, MO 64110