Have you considered leaving a legacy for those who follow you? Find out how a gift to International House Davis can help you, your family and the international community. Your planned giving now will support International House Davis later.
As a member of International House Davis, you understand and support the importance of international understanding in today’s world. Some of you may even have considered including I-House in your estate plans. Many think of estate planning as something important to do – but in the future. Working on your estate plans TODAY can have many benefits, especially for peace of mind that you interests and wishes are recorded. If you can include a provision for I-House, you will have the added satisfaction that others in the future will benefit from your generous act today.
Preparing your estate plans does not need to be cumbersome or complicated. Here are some steps to help you begin:
- First, gather information about your assets, including retirement funds, bank accounts, and real property.
- Second, think about the people and organizations that matter most to you and how you would like to provide for them.
- Third, think about who can serve as your executor.
- Fourth, meet with a professional. If you do not have an attorney in mind, your local chapter of the American Bar Association can make a referral.
Below is more detailed information. If you have any questions, please contact our executive director, Elisabeth Sherwin who will be happy to help you. You can reach her at (530) 753-5007.
If you are interested in the wise use of your resources, a planned gift can give you the choice to determine what matters most. Planned giving encompasses a variety of ways you can perpetuate those activities you have supported and encouraged throughout your lifetime. Planned giving usually involves financial or estate planning and is a means by which you choose where your assets go either in the form of an outright gift (e.g., appreciated securities or real property like a house, farm or car) or deferred gift (trusts, pooled income funds, life insurance, retirement plan assets or bequests).
A planned gift enables you to reduce income taxes and estate taxes. For example, if your estate exceeds a certain amount (see your attorney for specific details), careful planning can enable you to give to charity what might otherwise have gone to taxes. Planned gifts are generally made through one of the following:
- A bequest in a will
A bequest in a will or living trust is perhaps the easiest way to make a planned gift. The importance of a will cannot be over-emphasized since about 50 percent of all adults die without one and without a will the state will divide your assets without making charitable contributions.
If you want to make a donation to International House, and ensure the stability and longevity of the organization, it is quite simple. A bequest can take the form of a set amount of money or direct the giving of a specific asset such as a house or insurance policy. For instance: “I give ______ (write the amount of money or the asset) to International House Davis, 10 College Park, Davis CA 95616.” Be sure to describe any real or personal property you are donating and give the exact location.
The bequest can also be in the form of a percentage of the estate: “I give International House, Davis __ percent of my estate.” Or, you may want to designate a contingency beneficiary: “Should any of those I designated to receive part of my estate precede me in death, I would like I-House to receive ____.”
If specifically providing for members of your family, you might wish to provide for a gift from the residue to I-House. In such a residual bequest, you might say: “All the residue of my estate, including real and personal property, I give to International House, Davis.”
If you wish to have your bequest applied to a particular aspect of I-House, such as a program, personnel or maintenance) you can specific this, too, in your will. And at any time, a gift may be made in memory of or in honor of a loved one, or a member of your family.
It is important to remember that selecting a beneficiary is not an either-or situation. You don’t have to choose between your family and I-House. You can do both. You should consult with your attorney or estate planner to see how it can best be worked out.
- A life income gift
Life income gifts include a Pooled Income Fund (PIF) and a Charitable Remainder Trust (CRT).
There are major tax advantages both while you are living and after your death.
- Income for life, depending on the fund’s earnings. The income can also flow to a designated beneficiary.
- Income tax deductions, which can be significant.
- No capital gains taxes on gifts of appreciated property.
- Reduced estate taxes — because at the death of the last beneficiary receiving income, the property goes to International House and/or others you have designated.
- Growth of the fund normally occurs because only a percentage of the earnings is distributed and the balance is returned to the principal.
A Charitable Remainder Trust — CRT — involves a minimum of $100,000 and is a separately managed fund. Like the PIF, this provides income for life from a fund designed to grow, which offers income tax deductions, relief from capital gains taxes, and a reduction in estate taxes. Unlike a Pooled Income Fund, however, the CRT can easily accommodate a gift of real estate.
- A life estate
Another way to make a planned gift is to deed your home, vacation home, farm or ranch to I-House. Through a charitable life estate, you retain the right to live on the property and/or receive any income from it as long as you or your beneficiary is alive. You receive an income tax deduction when the property is deeded to I-House and avoid capital gains taxes when making the transfer, and your estate taxes may be reduced at the time of your death.
- Appreciated property
Securities or real estate can be an excellent means to make a gift to I-House. There are no capital gains taxes charged to the donor plus the income tax deduction for a gift of assets is normally the fair market value. The donor must transfer the stock or real estate to I-House before selling it and I-House can then sell the asset without incurring taxes.
- Life insurance
Life insurance is a convenient way to make a gift. You can do the following:
- Purchase a new policy and make I-House both the owner and the beneficiary. The premiums are tax-deductible.
- Make I-House the owner and the beneficiary of an existing policy. The deduction is normally equal to the cost basis in the policy and any future premiums are deductible.
- Make I-House a contingent beneficiary of an existing policy, i.e., name I-House to receive the proceeds if the primary beneficiaries predecease the insured.
- Make I-House the beneficiary of an existing policy.
- Retirement plan assets
An easy way to make a gift is to name I-House as beneficiary of a retirement plan such as an IRA. When the retirement plan assets are paid out to anyone except a surviving spouse, the distribution is subject to income taxes and estate taxes, if applicable. On the other hand, I-House as a tax-exempt entity does not have to pay these taxes.
Is this for you?
Remember, for each multi-million dollar bequest, countless others are arranged by people at all income levels in all walks of life. The important thing to consider is whether you would like to continue to play a role in an organization that you appreciated during your lifetime. For additional ways planned giving can assist you and I-House, please phone Elisabeth Sherwin , I-House executive director, at (530) 753-5007. However, for advice in your specific case, you should consult your own financial adviser or your attorney.
International House, Davis
Tax ID No.: 94-2822342