IRA Fund Transfer
Retirement accounts can incur heavy tax penalties when paid out to beneficiaries. Oftentimes over 80% of your account’s value will go to the government. Would you like 100% to go to the Haven?
Simply name the Haven as a beneficiary of your IRA, 401k, 403b or other retirement plan and avoid significant taxation of the proceeds. Also, individuals 70½ or older can make tax-free transfers from IRAs of up to $100,000 per year to charities. The compromise tax bill, which has just been passed by Congress and signed into law by the President, extended until December 31, 2011 a provision allowing taxpayers who are age 70½ or older to make tax-free transfers from Traditional or Roth IRA of up to $100,000 per year to charities.
Support the Haven far into the future – without affecting your assets during your lifetime.
Any asset can be included in a bequest (through a living will or trust) to ensure that your estate will help support a cause that is consistent with your beliefs and values. Making a bequest reduces estate taxes, eliminates capital gains taxes, and benefits the Haven.Sample Bequest Language:
“I give and bequeath _______ dollars, or _____ percent of the residue of my estate, to Upper Valley Haven, Inc. (or any successor corporation), with principal offices located in White River Junction, Vermont, to be used for its general purposes.”
Avoid the capital gains tax of a sale, or get immediate cash after selling for less than fair market value, and in both cases benefit from an income tax deduction.
With a charitable bargain sale you sell your property to the Haven for less than fair market value and get immediate cash and a charitable income tax deduction for the discount you took from market value. With a retained life estate gift you give the Haven your home, but reserve the right to live there for the rest of your life, and also take an immediate tax deduction and avoid capital gains tax on the appreciated portion of the property that would have been taxable if the property were sold. One can also make an out right gift of real estate (a second home) to the Haven; the Haven then sells the property and uses the proceeds.
If current beneficiaries of your life insurance plan are no longer living or do not need the funds, you can donate your policy to the Haven.
You can donate a paid-up policy and receive an income tax deduction of the replacement value or cost basis of the policy, whichever is less. To qualify for the charitable contribution deduction on a gift of an existing policy, you must name the Haven both owner and beneficiary. One can also name the Haven as a death beneficiary at any point in time.
Charitable Remainder Trust
You, or a loved one, can benefit from income during life and then the Haven will receive the principal of the trust upon the last beneficiary’s passing.
A Charitable Remainder Trust (CRT) is the most flexible gift plan and involves two sets of beneficiaries. Income beneficiaries receive a set percentage of income for your lifetime from the trust. The second beneficiary is the Haven, which receives the principal of the trust after the income beneficiaries pass away. The CRT allows taxpayers to reduce estate taxes, eliminate capital gains taxes, claim an income tax deduction, and benefit the Haven instead of the IRS.
Charitable Lead Trust
The Haven can benefit from income during your life and then upon your passing your beneficiaries receive the principal.
A Charitable Lead Trust (CLT) is the reverse of a CRT. The Haven receives an income stream for a period of years and at the end of the term, the remaining assets are transferred to your heirs. You receive a gift tax deduction upon creation. This is an effective way to transfer wealth to heirs with little or no gift/estate tax liability while providing much needed support for the Haven.
We encourage you to consult your lawyer, family members, and other financial advisors when considering any planned charitable gifts.
The Upper Valley Haven is a 501(C)3 organization. Federal Tax I.D. number: 03-0277908. All donations are tax deductible as permitted by law.
The Upper Valley Haven is an active member of the Planned Giving Council of NH & VT and LEAVE A LEGACY® NH/VT.