Making a Charitable Gift Through Your Will
This article was provided by
John R. Lolio, Jr., Esquire, a partner with
Sherman, Silverstein, Kohl,
Rose & Podolsky, P.A., in Pennsauken,
NJ, and a volunteer member of the SOCH Foundation’s Planned Giving
Committee
Virtually everyone should have a will. Your will may be used to distribute your property to family members, manage property for heirs who are not prepared to manage their own financial affairs, reduce taxes and estate settlement costs, name custodians of your children, and appoint executors of your estate.
Charitable gifts may also be made through your will. These bequests can be tailored to suit the desires of the donor, the needs of the charity, and the estate planning recommendations of the donor's professional advisors.
Suggested or “Sample Bequest Language” for specific, percentage, residuary, contingent, and restricted bequests can be found at the bottom of this article.
Deferred life income vehicles may also be established by a will. Testamentary
charitable remainder trusts, pooled income funds, or charitable gift
annuities may be created for surviving beneficiaries. This approach is
sometimes called the "giving it twice" technique. The donor
can give the income to family members first, then have the principal
distributed to charity thereafter.
Minimum Amount to Fund
- No minimum for simple bequest.
- Contact the SOCH Foundation for minimums on endowments or deferred
life income gifts.
Benefits to Donor
- Retains control of the assets until death.
- Can be changed at any
time during life.
- Keeps all transactions private until death.
- Satisfies philanthropic objectives.
Benefits to Charity
- Major source of funds to achieve long-range objectives.
- In the case of simple bequests, no responsibility except for using
the funds as designated.
Suitability
- Anyone with charitable intent.
- Contingent charitable beneficiary clause prevents escheat or reversions of assets to the state if no legal heirs or claimants exist.
Revocable Living Trust
The revocable living trust is a simple solution for the donor who wishes to make a major gift with assets they might need later. The trust may be funded with property that can pay income to the donor for life. In case of a medical or other emergency, the donor may withdraw as much of the trust principal as necessary, or even terminate the trust.
At death, income payments may continue for the lifetime of a designated beneficiary, with the remainder going to charity thereafter.
Minimum Amount to Fund
- Usually negotiable, and additions are possible.
Benefits to Donor
- Professional asset management for donor and family members.
- Standby
protection in the event of illness or financial need.
- May lower probate and estate administration costs.
- Quicker distribution of assets after death.
- Useful tool for tax and estate planning purposes.
- Keeps all transactions private before and, in many cases, after death.
- Satisfies
philanthropic objectives.
Benefits to Charity
- Less likely to be revoked or changed than a Will.
- Allows gift principal to grow.
- Avoidance of delays due to probate
- May become the basis for additional gifts.
Suitability
- Virtually all individuals holding assets who desire good liquidity, flexibility, and trust management services.
- Donors wishing to support
a charitable organization, but feel a need to "hold on" to
the assets in case of an emergency.
Sample Bequest Wording
Unrestricted bequests are preferred, since the funds may be used where the need is greatest. However, bequests may be restricted for specific areas of our work or programs.
Specific Bequest
"I give and bequeath to the South Ocean County Hospital "SOCH" Foundation,
the sum of $_____________ to be used for the general purposes of the
Foundation."
Percentage Bequest
"I give and bequeath to the South Ocean County Hospital "SOCH" Foundation,
__________% of my estate to be used for the general purposes of the Foundation."
Residuary Bequest
"I give and bequeath to the South Ocean County Hospital "SOCH" Foundation,
the rest, residue and remainder of my estate to be used for the general
purposes of the Foundation."
Contingent Bequest
"In the event that any of the above named beneficiaries shall not
survive me, or shall die during the administration of my estate, within
ninety (90) days from the date of my death, or as a result of a common
disaster, then I give and bequeath that beneficiary's share of my estate
to the "South Ocean County Hospital "SOCH" Foundation,
to be used for the general purposes of the Foundation."
Restricted Bequest
"I give and bequeath to the South Ocean County Hospital "SOCH" Foundation,
________% of my estate to be used to fund a Foundation research grant
in memory of my parents, John Doe and Jane Doe."
As always, we recommend that you contact your personal financial advisor. For additional information on wills and bequests, charitable estate planning, and The Knight Society, please contact the SOCH Foundation at (609) 978-3081, or simply click here to contact us.
