IT IS ESPECIALLY IMPORTANT THAT FINANCIAL AND/OR LEGAL PROFESSIONALS BE CONSULTED IN ORDER TO ATTAIN MAXIMUM BENEFITS FROM DONATIONS FOR BOTH THE DONORS AND DOGS FOR THE DEAF. Because of Dogs for the Deaf's 501(c)3 status with the Internal Revenue Service, all donation options have tax benefits according to current laws. AS ALWAYS, DOGS FOR THE DEAF, INC. CANNOT PROVIDE LEGAL OR FINANCIAL ADVICE. Please remember to check with your financial advisor to find the option that will be most beneficial to you.
There are many ways you can make charitable contributions through your estate planning to help Dogs for the Deaf. To make the right decision you need to carefully plan and organize your goals for giving. Determining which charitable giving strategy is right for you is as important as making the gift.
Below are some descriptions and options that can help you plan.
The most popular way is through your Will or Trust -
A well-planned Will can avoid problems for your heirs and direct a gift to charity, which can reduce taxes and estate settlement costs. You can also create a Trust within your Will that will help reduce or eliminate taxes and provide asset management for your heirs, possibly delaying distribution to minors or to address special needs of heirs. You may also want to designate a "Power of Attorney" to handle your affairs, in case you are not able to.
So many of us say, "I'll take care of it soon - I know it's important." But, life happens and we let time pass and don't take care of this vital matter. You have and want the right to decide who benefits from your estate after your death - don't let the state do it for you! If you were to die without a Will or Trust, the laws of your state will distribute your property as they see fit; and your family or loved ones could battle for years.
Why Do I Need A Will?
A valid Will or Trust is the ONLY way to choose your beneficiaries;
Even if you are married, both you and your spouse need separate Wills identifying your specific wishes;
If you have children or own property, own stocks or have other financial assets - you should have a Will, regardless of your age or financial standing;
The state can not know your wishes for your family, charitable activities or friends if you don't tell them!
Other ways that may be beneficial depending on your financial circumstances (be sure to check with your financial and legal advisors):
Bargain Sale: A sale of property (to a charity) in which the difference between the sale proceeds and the property's fair market value constitutes a charitable donation.
Cash or designated assets or property: You can leave a specific cash amount or percentage of your estate, your car, RV, home, artwork or other property to a charity like DFD.
Charitable Lead Trusts (CLT): Funded by a transfer of assets from a donor to a Trust. A charity receives the income for a lifetime or a number of years, after which the remaining assets are transferred to the donor or other persons (typically children or grandchildren).
Charitable IRA: You can designate a charity as the beneficiary of all or part of your IRA. Other tax benefits may apply.
Charitable Remainder Trust (CRT): Funded by a transfer of assets from the donor to the Trust. Beneficiaries receive a specified percent distribution from the Trust for a period of years or life, with the remainder interest paid to charity. There are several types of Charitable Remainder Trusts.
Life Insurance: You can designate DFD as the beneficiary of your life insurance policy. This allows many people to give a larger gift than they would otherwise be able to make, and it avoids probate. By making DFD the owner of the insurance policy, in addition to being the beneficiary, the premiums are tax deductible, too!
Securities/Stocks: You can donate stocks that may have appreciated and save on capital gains taxes, while enjoying a federal income-tax deduction for the full value.
DID YOU KNOW?
Giving appreciated property like stock, property or real estate can cost you less than giving the equivalent in cash;
Some assets are worth more to you if you give them to charity;
Some charitable gifts allow you to pass on more to your heirs AND save taxes;
You can benefit from making a gift now, while leaving a legacy later.
