There are so many options available to those that want to make a planned gift that can offer substantial tax beneﬁts, supplement retirement income and enable donors to leave a legacy that will secure a safe, permanent home for the cats of PrideRock Wildlife Refuge. Listed below are several ways that exist. Contact your attorney or ﬁnancial advisor for speciﬁc state regulations.
Your will makes it possible to protect the animals you love. By including PrideRock in your will, you are able to continue providing a permanent home for the big cats. You can make your bequest for a speciﬁc dollar amount, a percentage of your estate or speciﬁc assets from your estate. Bequests, like other gifts, can be designated for several purposes or given without restriction. Once you decide to leave a gift, your ﬁrst step is to contact your attorney to help you draw up your will. Your attorney will need to know that our legal name is PrideRock Wildlife Refuge and we are a non-proﬁt charitable organization (EIN 75-2792911). Our 501(c) (3) status under the IRS Code provides a tax saving for you and your estate. The three main types of bequests are percentage, residual and speciﬁc.
The Percentage Bequest
A percentage bequest is a bequest of a certain percentage of your estate or of another asset. An example would be providing that upon your death, your house be sold and that each of your children receive one-third of the net proceeds. You designate that a speciﬁc percentage. Anywhere from 1-100% of your estate is left to PrideRock. The greatest advantage of this structure is that, as your estate increases in value over time, your gift will keep pace and your support for PrideRock will grow. I give, bequeath, and devise (state percentage amount) to PrideRock Wildlife Refuge, a qualiﬁed 501(c) (3) charitable institution, located in Terrell, Texas, to be used to provide lifetime care for abused, neglected, or abandoned big cats.
The Residual Bequest
A residual bequest is a bequest of all or a portion of the remainder or residue of your estate after speciﬁc and other bequests have been distributed. An example would be providing that everything that remains aﬁer all previous bequests have been satisﬁed should be given to the charity of your choice. By naming PrideRock as the beneﬁciary of the residue, you simplify the probate process and ensure that the government allocates the remainder of your estate as you see ﬁt.
The Specific Bequest
A speciﬁc bequest is a bequest for speciﬁc item of dollar amount. An example of this would be providing that your best china be given to your Aunt Sue upon your death. I give, bequeath, and devise (state amount or item) to PrideRock Wildlife Refuge, a qualiﬁed 501(c) (3) charitable institution, located in Terrell, Texas to be used to provide lifetime care for big cats.
There are many different types of trusts and each has speciﬁc beneﬁts to the donor and charity. In essence, assets are deposited into a trust. The trust pays income either to the donor, someone the donor designates or to the charity. At the end of the trust, the assets that remain will go either to the charity or revert to the donor's family. The amount of the income is either a set amount per year or a percentage of the value of the assets.
Charitable Gift Annuity
A charitable gift annuity can help you support PrideRock and provide you (or you and your spouse jointly, or someone you designate) with an income ﬂow for life. There are several real beneﬁts you will receive. Annuity rates are established at the date the annuity is created and the resulting payment remains ﬁxed for the life of the annuitant(s). You are eligible to receive an income tax deduction (typically 40-6% of the contribution) for a portion of your gift and if the gift portion of your annuity exceeds the IRS contribution limit, you may carry forward the excess deduction for as many as five additional years. A portion of each payment you receive from your annuity is generally considered tax free and not reported on your income tax return. If you fund your annuity with appreciated stocks, bonds or other assets, you may postpone reporting the capital gains: most often, this gain can be prorated over your life expectancy.
Stock or bonds are wonderful ways to ensure that PrideRock can continue to provide a safe and loving home for its big cats. The best way for both you and the cats to beneﬁt is to have your broker transfer your stocks directly to PrideRock. You can then realize the best tax savings and donors enjoy a two-fold advantage in donating long term appreciated assets: a charitable tax deduction for the full present fair market value of the asset and absolutely no tax on the appreciation.
A young donor can greatly beneﬁt from using a life insurance policy to support PrideRock. A donor may apply for a new policy or make a gift of an existing policy which has cash value. A new life insurance policy can enable someone with many current family obligations to turn a relatively small contribution into a dramatically larger gift. For the older donor, a paid-up life insurance policy that is no longer needed makes an excellent gift. Another option is to simply name PrideRock as a primary or contingent beneficiary of a new or existing policy, without transferring ownership of the policy. During your lifetime, you retain ownership and have access to the policy's cash value, but realize no tax beneﬁts. After your death, if the proceeds of the policy are paid to PrideRock, your estate is entitled to an estate tax charitable deduction.
Retirement accounts are popular because the contributions are made with pre-tax dollars and the assets in the accounts grow tax-deferred. However, funds withdrawn from these accounts are usually taxed at both high income and estate tax rates. It is possible at death, less than 30% in a retirement account will reach non-spouse beneﬁciaries. Therefore, individuals planning to make charitable gifts at death should consider using retirement accounts to fulﬁll their wishes. By giving retirement account assets, donors avoid substantial taxes that would otherwise be due. Other less heavily taxed assets are then available to fulfill bequests to loved ones.
Gifts of real estate have many advantages including bypassing capital gains’ reducing estate taxes and more. These gifts can include a house, apartment building, farm, vacation house, commercial building and non-income producing land. A donor can make an outright gift of real estate now or through the estate, or use it to fund a charitable remainder trust that provides income to the donor or the donor's children. A gift of real estate typically requires certain procedural steps, including a site visit to the property, a qualiﬁed appraisal, a preliminary title report and an environmental assessment. There are even ways to make such a gift and achieve tax advantages now while continuing to receive lifetime income from an income producing property or retaining lifetime use of your property.