REVIEWING YOUR WILL It's your legacy!
Penrickton Center for Blind Children depends on the charitable support of individuals, businesses and service organizations. It is only through their generosity that Penrickton Center can provide the critical programs and services needed by children who are blind and multiply disabled.
|IMAGINE FOR JUST A MOMENT:
The excitement young children experience as they explore the world around them in spite of their blindness. The pride a blind and multiply disabled child feels ihn being able to take care of personal needs such as tying shoes, feeding, brushing teeth and dressing "all by myself." The joy even the most physically challenged child feels in discovering greater movement through mobility therapy as well as music and dance.
The relief parents feel in knowing that their child has a bright and hopeful future. Every day we help children to reach out, learn and achieve their full potential in life, but only because of people like you who care to make these things happen. We appreciate your interest in perpetuating this help.
An up-to-date will is an essential part of every estate plan. If you do not have a will it is important that you initiate that process. Your attorney will help you draft a will. Each state has different laws and it is vital that you seek the help of a competent professional. If you dont have an attorney now, ask friends of relatives for the names of attorneys in your area who have helped them satisfactorily. Or you can call your local bar association for a list of attorneys with estate planning experience. Be sure to tell them that you want to make a will. The cost of drafting most wills is not expensive. Of course you should ask your lawyer in advance what it will cost. The expense is almost always a good investment as you probably will reduce estate settlement costs and may reduce taxes.
BEFORE YOU VISIT YOUR ATTORNEY, WRITE DOWN;
The people and charities you want to include in your plan. Dont forget to write down their addresses, ages and full names.
A list of your assets. Include your home, stocks, bonds, CDs, life insurance and vacation home or time share if you have one.
Any debts or mortgages you may have.
Your income and its sources.
You may already have an accountant or financial planner. You should include their names, addresses and phone numbers.
If you already have a will, it is usually quite easy to change or amend it. From time to time you will want to review your will, especially if you move, if you have a change in marital statue, if new grandchildren are born or if you have a significant changes in asset values.
There are many ways you can give to charities as part of your estate planning.
An outright bequest. This is the simplest and easiest way for most donors to make a lasting and satisfying gift to their favorite charity. If you already have a will, you can make a gift inexpensively through the use of a codicil. Charitable bequests are deductible from your estate, and therefore, tax savings are possible.
Gifts of a personal home, vacation home or condominium. You may make an outright gift of real property or you may prefer to retain the right to occupy the property for life. You can retain this right for a personal residence or a vacation home. One of the advantages to such a plan is that you can take a current income tax deduction of the remainder interest. Another advantage is that you dont lost income or increase your expenses. The gift may also help you avoid estate taxes as well.
Charitable gift annuity. Arranging a gift annuity can provide you with income for life. You may choose to provide for a loved one as well. You receive an initial tax deduction for a portion of the amount invested. Payments made to you may be partially tax exempt. You may also reduce the possibility of estate taxes. You can generate additional tax benefits by exchanging appreciated property for a charitable gift annuity.
Gifts of life insurance. Life insurance provides protection for a growing family when it is needed most. When that need is no longer present, the donor may transfer the policy to a charity. The present cash surrender value of the policy is deductible as a charitable contribution. If you continue to pay the premiums. they too are deductible. Upon your death, the charity will receive the proceeds. Even a term policy of over $50,000 can provide you with a tax benefit and the charity with a potentially substantial gift.
Charitable remainder trusts. They can provide a wonderful opportunity to receive income for life, avoid capital gain taxes, reduce income and estate taxes and make a substantial gift to a favorite charity. You may transfer cash or income-producing property into the trust. You may designate the income to go to a second beneficiary. An advantageous way to fund such a trust is to use appreciated property (stocks, bonds, real estate). Thus, you can avoid capital gains tax and possibly increase your income as well. You must keep in mind that the arrangement of such a trust is an irrevocable act.
(1) A charitable remainder annuity trust must pay you or another income beneficiary a fixed dollar amount of a least 5% of the initial value of the assets placed in the annuity trust. The amount you receive stays the same each year.
(2) A charitable remainder unitrust must pay a fixed percentage of at least 5% of the fair market value of the trusts assets as determined each year. The dollar amount you receive can go up or down. Payments can be limited to trust income with the difference carried over to future years.
Charitable lead trust. Occasionally this my be an advantageous way of giving. In this case the charity receives the income and the remainder interest returns to you or passes to beneficiaries of your choice. The income paid to the charity may provide you with a tax deduction, but the overall tax advantages are far less than those provided by the charitable reminder trust. Nevertheless, the lead trust may be used to reduce or avoid gift or estate taxes.
Special note: Penrickton Center depends on annual gifts to maintain its services for children who are blind and multiply disabled. Outright gifts of cash or appreciated securities are tax deductible according to law. If you work for a company with a matching gift program, you can increase your gift; please supply us with the necessary matching gift forms.
PENRICKTON CENTER FOR BLIND CHILDREN
26530 Eureka Road
Taylor, MI 48180
Services are offered without regard to race, color, religion, national origin or sex.