A will is a written, legal document that specifies how you
want your estate distributed after your death. Your will is your last
opportunity to provide financial support to the charitable causes that are
dear to your heart. A gift made through a will is called a bequest. There are
three ways that you can include a bequest for Pulmonary Fibrosis Foundation
in your
will:
The most common is an outright bequest, which can be either a
specific dollar amount or a specified percentage of your estate. As with all
gifts, bequests can be for the unrestricted use of the foundation or designated
for a specific area of research. You also have the option of designating your bequest for endowment,
where only the income from principal is used for whatever purpose you
designate.
Another possibility is to make a residuary bequest, whereby
the foundation would receive the balance of your estate after all other
specific bequests have been satisfied. Finally, there is the contingency bequest, whereby
the foundation would receive any funds that you designated for beneficiaries that
pre-deceased you or organizations that are no longer in existence.
In addition to being a vital source of funding for biomedical
research through the Foundation, bequests provide an opportunity to
memorialize, in perpetuity, the donor or a loved one of the donor's
choosing. Through your will or living
trust, you may be able to provide substantial support to the foundation without
diminishing the assets available to you during your lifetime. After
providing for your loved ones, you may decide to give a specific amount or a
percentage of your estate. Your heirs can realize important estate tax
savings from this type of contribution because a bequest to foundation may be
deducted from the taxable estate when determining estate taxes. Often a
bequest can be done with an amendment to your existing will.
What are the other types of
gifts you can make to the
Pulmonary Fibrosis Foundation ?
LIFE INCOME GIFTS
There are many ways to make
a gift of cash, securities or other marketable assets to the foundation, and retain
life-income for yourself, spouse and/or others -- with the remaining
principal passing to the foundation at the death of the last beneficiary (or, in some
cases, after a term of years). Such gifts provide sustained income and tax
deductions. When appreciated assets are used, taxes on gains may be avoided.
One example of a life income
plan is a gift annuity. In return for an irrevocable gift of cash or
securities, foundation agrees to pay you a fixed dollar amount during your life or
the life of a designated loved one (must be at least 65 years of age). The
rate of the annuity is based on the age(s) of the annuitant(s). You receive
an income tax deduction for a portion of the amount transferred if you
itemize and part of each payment is tax-free for a period of years.
RETIREMENT PLANS
Naming the foundation as a beneficiary
for funds in a retirement plan can be easy. The person or financial
institution handling your Individual Retirement Account, other retirement
plan or profit-sharing account can help.
APPRECIATED SECURITIES
Gifts of stocks, bonds and
mutual funds make especially attractive contributions and may offer you
capital gains tax incentives when they have been held long term. In
addition, amounts up to 30 percent of your adjusted gross income may be
deducted for the year the gift is made; any excess can be deducted over the
next five years.
REAL ESTATE OR PROPERTY
Another way to avoid or
delay capital gains tax is through a gift of real estate that has been held
long term. A tax deduction for the fair market value of the property is also
permitted equal to up to 30 percent of your adjusted gross income.
LIFE INSURANCE
Giving through life
insurance can allow you to make a gift of assets you no longer need for your
family's security. When a life insurance policy is transferred to the foundation
as a
donation, the cash value of the policy can be deductible. You may also
assign a policy's ownership to the Foundation and name the foundation as irrevocable
beneficiary. Subsequent premiums you pay are tax deductible.
GIFT OF CASH
Perhaps the most convenient
method of making a gift to the foundation is by cash or check. A gift of cash is
tax-deductible for all taxpayers who itemize. Amounts up to 50 percent of
your adjusted gross income may be deducted for the year the gift is made;
any excess can be deducted over the next five years.
For more information on
making a donation contact
Michael Rosenzweig, Ph. D. at:
Pulmonary Fibrosis Foundation
1332 N. Halsted St. Suite 201
Chicago, Illinois 60622
312.587.9272
or email: breathe@pulmonaryfibrosis.com.
Disclaimer:
This information is not
intended as specific legal or financial advice.
Consult your attorney/tax
adviser when considering any legal or financial matters.
Latest update
March 04, 2008