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Planned Giving

Bequests

One of the simplest types of planned gifts is a bequest to Lake-Geauga Habitat for Humanity in your will or trust. This form of gift is attractive because it is easy to make, it allows you to retain complete use and control of your assets during your lifetime, and it allows you the freedom to change or revoke your gift at any time. In addition, a bequest can be added to your existing plans through a simple document called a codicil, requiring minimal time and expense to you.

Although there are no tax advantages during your lifetime, upon your death, your estate may receive a charitable deduction for both federal and state estate tax purposes

Contingent Bequests

A contingent bequest is a gift that takes effect only if other beneficiaries predecease you. For example:

“If neither my spouse of any descendent of mine survives me, then I give, bequeath and devise all the rest, residue and remainder of the property, both real and personal, wherever situated, which I may own or be entitled to at my death, to Lake-Geauga Habitat for Humanity.”

If you should wish to direct your bequest to a specific purpose other than general purposes, please contact Lake-Geauga Habitat for Humanity to discuss your intentions.

Specific Bequest

A specific bequest is a gift of a particular dollar amount or of a particular piece of property. For example:

“I give, devise and bequeath (dollar amount of description of property) to Lake-Geauga Habitat for Humanity.”
OR
“I give, devise and bequeath 10 shares of Apple Inc. stock to Lake-Geauga Habitat for Humanity.”

Should you wish to direct your bequest to a specific purpose other than general purposes, please contact Lake-Geauga Habitat for Humanity to discuss your intentions.

Residuary Bequest

A residuary bequest is a gift of all or part of your property remaining in your estate after debts, expenses, and specific bequests have been paid. When you make your residual bequest a percentage of your remaining estate instead of a specific amount, your gift will remain in the same proportion to your entire estate, regardless of unexpected increases or decreases in its value. For example:

“I give, bequeath and devise (all or ___ % of) the rest, residue and remainder of the property, both real and personal, wherever situated, which I may own or be entitled to at my death, to Lake-Geauga Habitat for Humanity.”

Should you wish to direct your bequest to a specific purpose other than general purposes, please contact Lake-Geauga Habitat for Humanity to discuss your intentions.

Beneficiary Designations

While most of your assets will pass to your family or to your favorite charities through your will, some assets, like retirement plans and life insurance policies, are governed by a separate document, called a beneficiary designation. Through these forms, you can specify the individuals and organizations you want to support. You can also specify the percentage of the assets you want each beneficiary to receive.

  • Retirement Plan Assets:
    You may wish to consider using retirement plan assets for gifts to your favorite charity. IRA assets, for example, could be taxed as high as 55% if they remain in your estate and left to family members. Leaving all or a portion of these assets to Lake-Geauga Habitat for Humanity removes the asset from your estate without taxation, allowing you to leave other assets, with less tax burden, to children and family. This type of gift is accomplished by completing a beneficiary designation form provided by the financial institution that holds your retirement plan assets, naming Lake-Geauga Habitat for Humanity the recipient of all or a percentage of those assets.
  • Life Insurance Proceeds:
    Designating Lake-Geauga Habitat for Humanity as a beneficiary of all or a part of your life insurance policy is a very convenient and easy way to make a charitable gift. Like retirement plan assets, this type of gift is accomplished by completing a beneficiary designation form provided by your insurance company. You can name Lake-Geauga Habitat for Humanity as the recipient of all or a percentage of the proceeds.

Life Insurance

Making a gift of a paid-up life insurance policy is another simple and easy way to support Lake-Geauga Habitat for Humanity.

If you have a life insurance policy that is no longer needed, you may want to use it to make a charitable gift. Simply name Lake-Geauga Habitat for Humanity as owner and beneficiary of the policy during your lifetime by completing both a change of ownership and a beneficiary designation form available from your insurance company. In doing so, you qualify for an income tax deduction for an amount roughly equal to the cash value of the policy.

Charitable Gift Annuities

A Charitable Gift Annuity is a simple contract between you and Lake-Geauga Habitat for Humanity. The Charitable Gift Annuity works like this.

In exchange for your irrevocable gift of cash or other assets, Lake-Geauga Habitat for Humanity agrees to pay you (or you and one other person) a fixed income each year of your life. The payments are guaranteed and are not affected by the ups and downs of the economy. Payout rates are based on your date of birth.

A Charitable Gift Annuity is appropriate for individuals aged 60 and older. For those individuals under age 60, we recommend a Deferred Charitable Gift Annuity. A minimum gift of $10,000 is required to participate.

How Do I Benefit?

  • Fixed payments for the rest of your life
  • Payments are not affected by the ups and downs of the economy
  • An immediate charitable income tax deduction for a portion of your gift
  • Part of your annual income is tax-free
  • Possible reduction in estate taxes
  • Reduction in capital gains taxes if stock is used to create your annuity
  • Recognition through Lake-Geauga Habitat for Humanity’s legacy society
  1. You transfer $10,000 to Lake-Geauga Habitat for Humanity to establish a Charitable Gift Annuity.
  2. The gift annuity pays a FIXED and GUARANTEED income at 5.1% for life.
  3. You receive an annual payment of $510, a portion of which is tax-free.
  4. You receive a one-time federal income tax deduction in the year of your gift. This chart shows the rates for a one-life charitable gift annuity based on a $10,000 gift.

Age | Rate
60 | 4.4%
65 | 4.7%
70 | 5.1%
75 | 5.8%
80 | 6.8%
85 | 7.8%
90 | 9.0%

Understanding your options with charitable gift annuities is step number one. If you would like to receive a confidential proposal designed specifically for you, contact Patricia Wade, Senior Development Officer, at 440-226-3000, or pwade@lakegeaugahabitat.org

Charitable Remainder Trusts

A charitable remainder trust allows you to provide income to yourself or others for life or a term of years while making a generous gift to Lake-Geauga Habitat for Humanity. The income may continue for the lifetimes of the beneficiaries you name, a fixed term of not more than 20 years, or a combination of the two.

How Does It Work?
You irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, The Cleveland Foundation, which administers charitable remainder trusts for Lake-Geauga Habitat for Humanity). During the trust’s term, the trustee invests the assets. Each year, the trustee provides a cash payment to one or more income beneficiaries named by you. The payment must be at least 5% of the trust’s initial value but can be much higher depending on how long the trust term is expected to be. Payments are made out of trust income and appreciation, or trust principal if income is not available.

When the trust term ends (or the donor dies), the trust’s principal passes to Lake-Geauga Habitat for Humanity.

Benefits

  • Stream of income for life or a predetermined number of years
  • Current charitable income tax deduction
  • Reinvestment of appreciated assets without erosion by capital gains taxes
  • Removal of assets from your taxable estate

There Are Two Types Of Charitable Remainder Trusts

  1. Charitable remainder unitrust
  2. Charitable remainder annuity trust

These two trusts are essentially the same. The major difference is that the charitable remainder trust will pay a fixed dollar amount each year. The charitable remainder unitrust has a variable payout, based on a percentage of the assets of the trust, determined each year.

A unitrust provides additional flexibility because you can add assets to the trust at any time.

To establish either of these trusts, contact your attorney or financial advisor.

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