A legacy gift is a planned future donation to The Village Family Service Center. It can be achieved through a formal document, such as a will, or may simply require a form from your financial institution or insurance company. Legacy (planned) giving allows your charitable wishes and values to live on after you are gone.
Please note: This information is not intended as legal advice. Contact your attorney for assistance creating your estate plan.
Planned giving options
- Bank accounts and CDs
- Retirement plan assets
- Charitable remainder trust
- Charitable lead trust
- Real estate
- Retained life estate
- Bargain sale
- Life insurance
This is a simple and common way to make a gift. Donations of cash are tax-deductible if you itemize in the year of contribution.
Leave a percentage of your estate to The Village. Or, make a bequest of money or a particular piece of property. There are several ways to make a bequest:
- Specific bequest: A gift of a certain item to an individual beneficiary.
- General bequest: Usually a gift of a stated sum of money.
- Residuary bequest: A bequest of an estate after all other bequests, debts, and taxes have been paid.
- Contingent bequest: Made on the condition that a certain event must occur before distribution to the beneficiary.
- Unrestricted bequest: A gift without conditions that allows the charitable organization to determine the wisest and most pressing need for the funds.
- Restricted bequest: A gift designated for a specific purpose or event.
- Honorary or memorial bequest: A gift given “in honor of,” or “in memory of” yourself, in your family’s name, or on behalf of someone else.
- Endowed bequest: Restricts the principal of your gift, requiring the benefiting charity to hold the funds permanently and use only a small percentage of its value each year.
Give stocks that have increased greatly in value, particularly those producing a low yield. If you have owned them longer than one year, you will pay no capital gains tax on the transaction and you can deduct the full fair market value.
Bank accounts & CDs
Name The Village as the “payable-on-death beneficiary” of your bank accounts or on certificates of deposit. You own the assets for your lifetime and have them available for your use. Upon your death, the assets pass directly to The Village without going through probate.
Retirement plan assets
Your most efficient estate planning option may be leaving all or a portion of your retirement plan or IRA to a charity like The Village, because tax laws often subject these assets to income and estate taxes upon death. Many techniques can be used to avoid income taxes up to 35 percent. At the same time, you can pass more tax-favored assets to your family.
Charitable remainder trust
A charitable remainder trust pays a fixed or variable income to the donor. The payments are made either for life or a period of time not to exceed 20 years. At the end of the trust’s term, the balance in the trust supports The Village’s mission. You’ll also receive a partial income tax deduction.
Charitable lead trust
This type of charitable trust pays income to one or more charitable organizations, typically for a period of years, after which the remaining trust assets pass to family members. It is an excellent way to meet charitable obligations as well as pass long-term appreciating assets to heirs with a minimum of estate or gift tax.
This is a simple donation of property that is not mortgaged, has appreciated in value, and you no longer need or use. You can deduct the fair market value of your gift and eliminate all capital gains taxes. Plus, you have removed that asset from your taxable estate.
Retained life estate
You can transfer the deed of your personal residence or farm to a charity now and keep the right to live in and use the property for your lifetime. You will receive a current charitable deduction in an amount that is based on your life expectancy and the value of the property.
In this scenario, you agree to sell property to a charity at less than its fair market value. The difference between the sale price and the fair market value is your charitable deduction. The net result is often more favorable than selling the property at fair market value and making a charitable contribution from the capital gain.
Rather than cancel policies you no longer need, you could name The Village as the beneficiary, or simply donate the policies outright.
For more information, call 800-627-8220 and ask to speak to a Development team member.