Gifts for the Future
As you begin to plan your estate, think about the people and institutions that have played an important role in your life.
You can help support the future work of La Leche League International (LLLI) by including a charitable bequest in your will or revocable trust.
A bequest is easy to arrange (see “Ways to Make a Bequest”):
- It is not payable until death, so it does not affect your assets or cash flow during your lifetime.
- It is private – your will is not filed or made public until your death.
- It is revocable – you can change the provisions in your will or trust at any time until death.
A charitable bequest or trust distribution is deductible for federal estate tax purposes, and there is no limit on the deduction your estate can claim. In addition, the gift is usually exempt from state inheritance taxes.
Ways to Make a Bequest:
Your bequest can deliver a specific dollar amount, asset, or percentage of your estate:
“I bequeath to La Leche League International, 110 Horizon Dr., Ste. 210, Raleigh, NC 27615, the sum of Ten Thousand ($10,000) Dollars to be used in support of La Leche League International programs.”
Alternately, you can give all or a percentage of the balance remaining in your estate after expenses, taxes, and the specific bequests have been paid:
“Of the rest, residue and remainder of my estate I give Twenty-Five (25%) Percent to La Leche League International, 110 Horizon Dr., Ste. 210, Raleigh, NC 27615, for its general purposes.”
Finally, your bequest can be payable to LLLI if the initial beneficiary is unable to inherit it:
“If my nephew does not survive me, is otherwise unable to inherit, or disclaims this bequest, I direct that it be paid to La Leche League International, 110 Horizon Dr., Ste. 210, Raleigh, NC 27615, for its general purposes.”
Charitable Remainder Trusts
Charitable Remainder Trusts offer you a way to give a major gift to LLLI, while providing you with income payments for life or for a fixed period of time.
The amount of income paid out each year during the life of the trust depends on whether it is a charitable remainder annuity trust or a charitable remainder unitrust.
Charitable Remainder Annuity Trusts provide a fixed dollar amount with each payment to the beneficiary. This amount corresponds to a percentage of the original investment paid out annually.
Charitable Remainder Unitrusts provides a fixed percentage of the fair market value of the trust assets, as determined each year.
A charitable gift annuity enables you to transfer cash, securities, or other assets to LLLI. In exchange, you receive fixed payments for life and an income tax deduction. Annuity payments can begin immediately or can be deferred to some future date.
A gift of life insurance is a convenient way to leave a gift that supports the work of LLLI. The different giving opportunities that are available with life insurance are:
- Purchase a life insurance policy and name LLLI as the beneficiary and “owner.” You pay the annual premium, which you can deduct from your income tax as a charitable gift. On your death, LLLI receives the life insurance benefit free of any taxes.
- Gift an existing policy to LLLI. If you have a life insurance policy that you no longer need, consider giving it to LLLI. You may receive an income tax deduction in the year of the gift, as well as for future premiums that you pay.
- Name LLLI as beneficiary on your policy for either all or a portion of the death benefit. You will still own the policy and continue to have access to any cash value. Although this approach may not provide a federal income tax deduction in the current year, your estate may receive an estate tax reduction for the amount of the death benefit that you bequeath to LLLI.
This information is general in nature and does not constitute legal or professional advice. We encourage you to seek professional legal, estate planning and financial advice before deciding upon your course of action.