wa y s o f g i v i n g that live on Your legacy through planned giving

Transcription

1 wa y s o f g i v i n g that live on Your legacy through planned giving

2 The Birch Society continues a long community tradition of support for New London Hospital throughout the greater Lake Sunapee region. From the Hospital s beginnings with four beds in the Morgan House to its present location on County Road, community support has played a critical role in the Hospital s continuity, growth and success. Planned gifts and bequests have been instrumental at every turn for the Hospital, from gifts of land where the Hospital sits today to generous bequests that have made possible the purchase of medical equipment. By becoming a member of The Birch Society, you will join an illustrious group of individuals who have acted on their desire to make a positive difference in the lives of others for generations to come. 2008

3 shaping our since history 1918 Dear Friend of New London Hospital: Most of us, if given the chance, would like to leave some kind of lasting legacy to show that our lives have made a difference in our community, that in some way we have contributed to an important work or cause that will benefit the lives of others for generations to come. Since its founding in 1918, New London Hospital has benefited from the generosity and foresight of individuals who wished to shape the future of their community. A planned gift gives you the opportunity to make a personal statement to help shape the future of New London Hospital and to leave a lasting legacy. This booklet provides a guide to the variety of ways you can support New London Hospital through The Birch Society, the planned giving program of the Hospital. These planned gift opportunities can benefit both you and your family now, while securing the future of healthcare in our community. Should you have any questions, we would be happy to help you with your charitable gift planning. Please call us at As always, we encourage you to discuss your plans with your attorney or financial advisor. Sincerely, Jeffrey McDaniel, CFRE Senior Director of Development New London Hospital 1

4 gifts of your stocks & Bonds legacy Appreciated stocks and bonds are, next to cash, the most popular assets donated to New London Hospital. Making a gift of securities is simple and tax effective. TAX ADVANTAGES You are entitled to a federal income tax charitable deduction if you itemize your deductions on your tax return. For appreciated securities held longer than one year, you can deduct the full fair market value. You can use your deduction up to 30% of your adjusted gross income. Any unused deduction can be taken in up to five succeeding years. With a gift of appreciated securities you pay no tax on capital gain. HOW TO MAKE A GIFT OF SECURITIES Ask your banker or broker to call the Development Office at for transfer instructions. Please also send our office a letter stating the purpose of your gift. The valuation of your gift of securities will be based on the mean market value of the securities on the gift date. GIFTS OF CLOSELY HELD STOCK You can donate stock in a closely held corporation and receive substantial tax benefits. There are a number of strategies you can use to structure the gift according to your circumstances. To explore the various alternatives, please contact the Development Office. 2

5 stewardship gift annuities charitable gift annuity is a contract between you and A New London Hospital, which guarantees you and/ or another beneficiary a fixed income stream for life. In exchange for your irrevocable gift, the hospital will pay you an annual fixed income in quarterly installments during your lifetime. A charitable gift annuity is part gift and part investment. When you make a contribution to establish an annuity, you are entitled to an immediate federal income tax charitable deduction for the gift portion of your annuity. Your deduction is based on the size of your contribution, the annuity payment rate and the age(s) of the income beneficiary(ies). Typically, a gift annuity is established with a contribution of cash or securities. The minimum contribution required to establish an annuity is $25,000. Please see the chart in the rear pocket of this booklet for a sample of the most up-to-date annuity payment rates and approximate income deductions. DEFERRED PAYMENT GIFT ANNUITY A deferred payment gift annuity is similar to the immediate payment annuity described above except that your income payments do not begin until a specified date in the future, which you choose. Because you have deferred payments, you receive higher income payments as well as a higher immediate income tax deduction. g i f t s o f s t o c k s a n d b o n d s / g i f t a n n u i t i e s 3

6 Charitable Remainder caring Trusts Charitable remainder trusts are gift arrangements that enable you to contribute to New London Hospital while providing an income for yourself and/or another beneficiary for life or a term of years. Using this giving vehicle, you can make a gift to the hospital and also meet other personal objectives such as building a retirement account, generating a higher income from assets you currently own, or providing for family members and other beneficiaries. A charitable remainder trust offers a number of attractive benefits: The opportunity to receive credit for a significant gift to New London Hospital; Annual income for yourself and/or another beneficiary; Immediate federal income tax charitable deduction; Elimination of capital gains tax on transfer of appreciated property; Estate tax savings. A charitable remainder trust can be established with an irrevocable gift valued at $100,000 or more. A variety of assets can be donated to a trust, including cash, publicly traded stocks and bonds, closely held stocks and real estate. There are two kinds of charitable remainder trusts the charitable remainder unitrust and charitable remainder annuity trust. 4

7 CHARITABLE REMAINDER UNITRUST The unitrust pays the income beneficiary(ies) a variable income, based on a fixed percentage (typically 5-6%) of the trust assets as revalued once each year. One advantage of the unitrust is that your income from the trust can increase as the trust grows over time. You may make additional contributions to a unitrust at any time. CHARITABLE REMAINDER ANNUITY TRUST The annuity trust pays the income beneficiary(ies) a fixed annual income (typically 5-6%) determined from the outset. The annuity trust may be advantageous if you are more interested in the security of a constant return than in the long-term growth potential of the unitrust. You may not make additions to the principal of the annuity trust, but you can establish any number of new trusts. The New London Hospital Association, Inc. will agree to serve as trustee for any trusts totaling $250,000 or greater, in which New London Hospital is named as an irrevocable beneficiary of 50% or more. c h a r i t a b l e r e m a i n d e r t r u s t s 5

8 Charitable Lead Trusts success If transferring assets to your heirs while reducing gift and estate taxes is a priority for you, a Charitable Lead Trust may be the perfect gift vehicle. Charitable lead trusts are often viewed as the opposite of a charitable remainder trust. A donor transfers property to the lead trust, which pays a percentage of the value of the trust assets, usually for a term of specified years, to New London Hospital. At the end of the trust term, the remaining assets in the trust and any growth it has realized are passed to your heirs. Although there is no income tax deduction when you create a charitable lead trust, your gift or estate tax is greatly discounted and any growth is passed to your heirs, gift and estate tax free. It is one of the only transfer devices currently available that can discount the value of the original assets and result in little or no taxes. At the same time, you fulfill your charitable intent. Bequests Bequests have long been the most popular planned gift in support of New London Hospital. The 1918 Society was formed many years ago to recognize those individuals who provide future support for the hospital in the form of a bequest. The 1918 Society operates as a subset of The Birch Society, and seeks to recognize the generosity of its members. A bequest is a gift of a percentage or specific portion of your estate as outlined in your will, to take effect when your estate is settled. Charitable bequests, which may be incorporated into a will when it is written, or added to an existing will by amendment (codicil), can take several forms: A Specific Cash Bequest names a specific dollar amount for New London Hospital. Example: I give/bequeath the sum of $ to The New London Hospital Association, Inc. in New London, NH. 6

9 A Residuary Bequest gives the hospital a stated percentage of your entire estate after provision has been made for your other beneficiary. Example: I give/bequeath one-half of the remainder of my estate to The New London Hospital Association, Inc. in New London, NH. A Contingent Bequest makes New London Hospital the beneficiary of your estate if your other named beneficiaries predecease you. Example: If is not living at my death, I direct that $ or percent of the remainder of my estate be distributed to The New London Hospital Association, Inc. in New London, NH. Or If any of the above named beneficiaries should predecease me, then I bequeath to The New London Hospital Association, Inc., in New London, NH, all the property, real or personal, which said beneficiary or beneficiaries would have received if they had survived me. testamentary trust You can establish a testamentary charitable trust through your will. At the time of your death, the trust uses all or a portion of your estate to provide income payments to one or more named beneficiaries. Upon the death of the surviving beneficiaries, the principal passes to New London Hospital. c h a r i t a b l e l e a d t r u s t s & b e q u e s t s 7

10 g i f t s o f l i f e i n s u r a n c e gifts of life insurance heritage There are a variety of ways to use life insurance to make a substantial gift to New London Hospital. Donate a paid-up policy, which you purchased originally to satisfy a need that no longer exists. If you designate New London Hospital as the beneficiary and owner of the policy, you would be entitled to an income tax charitable deduction equal to the replacement value or cost basis, whichever is less. Give New London Hospital a policy that is not fully paid up and take a deduction for the present value of the policy, which is approximately the cash surrender value or cost basis, whichever is less. If you continue to make premium payments, they are deductible for income tax purposes. Take out a new policy naming New London Hospital as the beneficiary and owner. Your premium payments are tax deductible. Establish a charitable remainder unitrust with a life insurance policy. The premium payments are partially tax deductible. The trust will provide a future lifetime income for your beneficiaries. Use life insurance as a replacement asset. When you make a gift to the hospital, you realize significant tax savings that year. You may consider using your tax savings to purchase a life insurance policy on your life for your dependents with an asset outside of probate, which will not be reduced by estate taxes. You will also avoid capital gains tax and reduce your estate tax liability. If appreciated real estate accounts for a substantial portion of your estate, it may interest you to know that it can be used to benefit New London Hospital and result in significant tax savings for you. 8

11 I ve made the closing the first insert, that way the brochure can run 8 pages. an invitation to give New London Hospital will continue to be shaped in significant ways by the legacies large and small of individuals who recognize the importance of having a strong community hospital. We are glad you are considering joining this tradition. If you plan to include New London Hospital in your estate planning, please let us know so that we have the opportunity to thank you personally for your commitment. For more information on making an outright gift or including New London Hospital in your estate plans, please contact Jeff McDaniel at jeff.mcdaniel@newlondonhospital.org. New London Hospital Development Office 273 County Road New London, NH

12 Development Office 273 County Road New London, NH a n i n v i t a t i o n t o g i v e