Gift Planning
With gift planning, you can make a larger gift than ever imagined, even increase your current income and at the same time support Sunnyview in its mission to “improve the lives of people with disabilities and the lives of their families.” A win-win situation for you and Sunnyview!
By making a planned gift to the Sunnyview Foundation in your will, you become a member of the Legacy Circle which entitles you to special hospital event invitations and programs! If you prefer to remain anonymous, your gift will be kept confidential.
There are many different ways to make a planned gift:
Bequests
You can make a provision in your will that names Sunnyview Foundation to receive a percentage, an actual dollar amount or residue of your estate. A bequest to the Foundation is not subject to taxation, and the value of your bequest is deductible in determining your taxable estate.
For an unrestricted bequest, which allows the Foundation board to determine where the gift is most needed, sample bequest language may say:
I, (Name), of (city, state and zip code), give, devise and bequeath to Sunnyview Rehabiliation Hospital Foundation (written amount or percentage of the estate or description of property) for its unrestricted use and purpose.
For a restricted bequest to a specific area at Sunnyview:
I, (Name), of (city, state and zip code), give, devise and bequeath to Sunnyview Rehabilitation Hospital Foundation (written amount or percentage of the estate or description of property) to be used for (state the purpose).
If at any time the particular area of the hospital or fund becomes obsolete, the Foundation board has the right to determine distribution of the gift, unless otherwise stated by you in the will. For instance, you can state, should there be a change in (state purpose), my gift will then be used for (alternate stated purpose).
For a residuary bequest to the Foundation:
I, (Name), of (city, state and zip code), give, devise and bequeath to Sunnyview Rehabilitation Hospital Foundation the rest, residue and remainder of my estate after all debts, taxes and bequests have been paid.
You can also name a contingent beneficiary. For instance, if you would like “cousin Joe” to receive certain assets, but he predeceases you, you may name a secondary beneficiary such as the Sunnyview Rehabilitation Hospital Foundation to receive those assets upon your death.
Life Insurance
There are several ways in which you can make a gift of life insurance to Sunnyview Rehabilitation Hospital Foundation.
- Name Sunnyview Rehabilitation Hospital Foundation as a beneficiary on your policy for all or a portion of the death benefit. You will still own the policy and have access to cash value. This may not provide you a federal income tax deduction immediately, but your estate may receive an estate tax reduction for the amount of death benefit you bequeath to Sunnyview Foundation.
- Give an existing policy toSunnyview Rehabilitation Hospital Foundation. You may receive an income tax deduction in the year of the gift in the amount of the cash value of the policy, as well as a reduction in the size of your taxable estate (if applicable).
- You may also name Sunnyview Rehabilitation Hospital Foundation for group term life or employer group coverage. By naming Sunnyview Rehabilitation Hospital Foundation as the beneficiary of the group term insurance for coverage over $50,000, you can not only make a significant gift, but also avoid any income tax on the economic benefit for the amount over $50,000. While the initial $50,000 could also be given, no income tax deduction would be generated.
- Purchase a life insurance policy and name Sunnyview Rehabilitation Hospital Foundation as beneficiary and owner. Your annual premium payments, gifted to Sunnyview Rehabilitation Hospital Foundation are tax deductible. On your death, Sunnyview receives the life insurance free of any taxes.
Retirement Plans
You may designate the Sunnyview Rehabilitation Hospital Foundation as a direct or contingent beneficiary of your retirement plan. You may also designate Sunnyview Foundation to receive a specific amount before the division of the remainder to family. Retirement earnings are taxed when they are withdrawn and can be taxed as high as 80 percent. Using qualified retirement plan funds is an excellent source of assets to fund bequests. You can designate the Sunnyview Hospital Foundation as a beneficiary (or contingent beneficiary after the death of your spouse) and funds pass to us free of taxes. This cannot simply be written in your bequest, but Sunnyview Foundation must be specifically named as a beneficiary in the retirement plan.
If you are 70 ½ or older, you can use your IRA funds up to $100,000 to make outright charitable gifts directly to Sunnyview without the gift counting as a taxable distribution. Qualified gifts can count toward your annual minimum required distribution and substantially reduce your taxable income. These charitable IRA transfers do not count toward the federal limits on deductible charitable gifts. If you have made other gifts during the year equal to or in excess of the deductible limits or if you have large unused deductions from previous years carried forward to this year, this is a particularly attractive option.
Real Estate
If you’ve owned a home or other property for a long time, it should have significantly increased in value. If you sell the property, you will be subject to capital gains tax on the appreciation. A gift of real estate to the Sunnyview Foundation, either by way of an outright gift, trust, bargain sale or in a bequest can provide you tax and estate savings in several ways.
An irrevocable gift of retained life estate allows you and your spouse to live in the home (or vacation home or farm) for the remainder of your life. All household taxes and expenses are the responsibility of the donor. The donor receives income tax benefits in the year the gift is made and estate tax benefits.
Charitable Trust
You can set up many types of trusts and make the Sunnyview Hospital Foundation a beneficiary. A trust is an arrangement where property is to be held and administered by a trustee for the benefit of those for whom the trust was created. Depending on the type of trust and how it is established, a trust may be changeable or not changeable, and tax benefits vary with each trust. Types of trusts include but are not limited to:
- Charitable Lead Trust
During the term or life of the charitable lead trust, an annuity or unitrust income is distributed each year to the Sunnyview Foundation and the assets are eventually transferred to your heirs. These trusts can be established during one’s lifetime or at death. A lead trust may be set up to provide a fixed dollar contribution annually or a fixed percentage contribution. - Charitable Remainder Trust
Set up so that a donor may irrevocably transfer assets into the trust created by the donor and governed by a trust agreement for life or may be set up for up to twenty years. The charitable remainder trust pays annual income to the donor or established beneficiary and the remainder left at the end of the terms of the trust will go to the Sunnyview Foundation. The charitable remainder trust is irrevocable. - Charitable Remainder Annuity Trust
Set up to pay a return or fixed annual percentage of 5 percent or more of the net fair market value of the assets placed in the trust. The assets are valued when the property is placed in the trust and are never revalued. - Charitable Remainder Unitrust
Just like the Charitable Remainder Annuity Trust, however the assets are revalued on an annual basis which could affect payments to the beneficiaries. - Living Trust
A revocable trust set up to operate during a donor’s life of the one setting up the trust. These trusts can also be set up as irrevocable. This trust allows you to leave instructions for who you want to handle your affairs and how you want your assets to be distributed when you pass away. A living trust is much like a will yet avoids probate. It also prevents the courts from controlling your assets if you are declared incompetent, and it gives you control over the assets in the trust that you leave to your named beneficiaries.
Charitable Gift Annuity
A charitable gift annuity is a worry-free gift that is easy to implement and offers a unique opportunity to support Sunnyview Rehabilitation Hospital Foundation. In this arrangement, a donor can make an irrevocable gift, with cash, securities, or mutual funds. In return, our organization agrees to make fixed payments to you for life. After your lifetime, the remaining amount supports our mission to improve the lives of people with disabilities and the lives of their families.
With this plan you can:
- Receive fixed payments for your lifetime and, if you choose, that of another individual
- Obtain tax-favored payments
- Take a partial current income deduction
- Reduce capital gains tax in most cases when using appreciated securities to fund your gift
- Not have your payments be affected by the ups and downs in the economy
Generally, the older you are at the start of your payments, the higher your payments.
Payout rates are the maximum rates recommended by the American Council on Gift Annuities and are adjusted periodically.
Savings Bonds
Bonds cannot be donated to a charitable organization during lifetime, however, you can leave the bonds to the Sunnyview Foundation through your will which will allow your estate to donate the full value of the bonds which gives your estate the full tax benefit.
As with any planned gift, a donor should obtain legal and financial advice. Members of the Sunnyview Hospital Foundation can work with you and your legal/financial team to create an estate plan according to your wishes. Please call us at (518) 382-4586 or email us at info@givetosunnyview.org.