Lung Health News, Fall 2003 / Winter 2004
One of the reasons I was initially attracted to work in the field of planned giving is that it has so many concrete benefits to offer donors. I sat down the other day and drew up a short list for those of you who want to support the American Lung Association's mission and are looking for ways to give.
- Gifts in wills and by beneficiary designation (wills, revocable living trusts, qualified plan balances and insurance policies) are "change your mind gifts." Prior to death, they aren't commitments, but a statement of intent. "If I don't need the money for myself, emergencies or family, I intend to have my executor make a gift to charity."
- Gifts of appreciated assets can eliminate or postpone the payment of capital gains tax, thus making the gift far less expensive than a gift of cash. "The avoidance of capital gains tax in planned gifts can enable one to reposition assets to produce more income.
- At least one planned gift, a gift annuity, enables most people to enhance their current income and part of the income is tax-free.
- One plan enables a donor to reduce or eliminate gift and estate taxes for transfers to loved ones, while continuing to make annual gifts to charity.
- You can retain control over the investments, the rate and types of income flows produced by some of the plans.
- At least one plan enables donors to commit to a large final gift at a very reasonable annual cost, providing the plan is structured at a young age. The gift is insured by the issuing company. This same plan can be used by the charity in advance of death.
These plans can be combined with financial products that meet very specific donor needs, such as long-term care.
Please note that this information is for general educational purposes and is not to be used without consultation with your own professional advisors. For more information about making a planned gift, call 1.800.LUNG.USA.
This article was written by Richard Lamport of Gift Planning Associates.
