Charitable Estate Giving
Making a Bequest >>
A charitable bequest is a simple and popular way you - and countless people of all financial means - can support organizations you care about. A bequest is a transfer by will of property such as cash, securities or tangible property to an individual or charitable organization.
For many donors, a bequest offers the opportunity to make a more substantial gift than would be possible during their lifetimes. Other donors view a bequest as an opportunity to round out a lifetime of giving with a lasting legacy to C.S. Mott Children’s Hospital.
Because of the tax advantages associated with a bequest to a charitable institution, assets from your estate that would otherwise go directly to government treasuries can instead be given to Mott to meet the needs of the patients and families we serve.
Charitable Gift Annuity >>
A charitable gift annuity is ideally suited for the person who would like to make a gift to benefit a charitable institution about which he or she cares deeply while also receiving fixed income for life. These annuities may be used by individuals of all ages, and also can be a welcome supplement to retirement income. Payment rates are based on the age of the annuitants. A minimum of $10,000 is required to establish a charitable gift annuity to benefit C.S. Mott Children’s Hospital.
A charitable gift annuity helps you meet your philanthropic goals while providing guaranteed income by offering:
- An immediate income tax deduction and the potential of avoiding capital gains tax
- A lifetime stream of fixed income for you and, if you choose, a loved one
- Annuity rates that may be higher than some other investment returns
- The assurance that your annuity will eventually become a significant gift to Mott Children’s Hospital to be used according to your wishes
Charitable Remainder Trust >>
Charitable remainder trusts provide you with:- Regular, often increased, cash flow
- Favorable capital gains tax treatment on the appreciated assets you used to fund the trust
- A current charitable income tax deduction
- Estate tax savings
A charitable remainder trust allows you to transfer assets into an individually structured trust that provides you and/or your beneficiaries with payments for life or a term of years. Appreciated assets that you donate to a charitable remainder trust can be sold without capital gains tax, so the entire sale’s proceeds can be reinvested for the trust’s benefit.
Leaving Retirement Assets >>
Your Individual Retirement Account (IRA) or other retirement plans—401(k)s,403(b)s, profit-sharing and money purchase plans—make wonderful gifts if you name Mott a beneficiary of assets after your lifetime.
Retirement accounts are often subject to income taxes and estate taxes at a combined marginal rate that can be 75 percent or higher. With careful planning, many of these taxes can be reduced or even avoided while making a significant charitable gift.
Charitable Lead Trust >>
A lead trust is an arrangement that provides annual gift income from the lead trust assets to a charitable institution, such as Mott, over a period of years. At the end of the period of years, the remaining lead trust assets are given to non-charitable beneficiaries, usually children or grandchildren. Lead trusts are particularly appropriate for assets that are likely to appreciate substantially over the life of the trust (typically 10-20 years).
A lead trust is particularly beneficial if the assets have great appreciation potential. Many people have used these trusts to pass very valuable properties to children and to grandchildren at little or no tax cost.
To learn more about giving to Mott, please contact Children's and Women's Health Development Team at 734-998-7702 or send an e-mail.
