 Summit
Society Options
Have questions about which planned giving options are best for you? Please
call Jodi Fallon Fern, Major Gifts Officer, at (413) 781-2801,
x246, or jfallonfern@wgby.org.
Wills and Living Trusts
For many, the optimal way to make a planned gift to WGBY is through a bequest
or other testamentary provision.
You can include a bequest to WGBY for a specific dollar amount or a specific
asset, such as a painting or real estate. You also can leave a bequest of
the residue of your estate or a percentage of the residue of your estate.
The process of including WGBY in your will or trust is simple. The following
is a sample of bequest language:
“I give (___________ percentage of my estate) or (the residue
of my estate) or ($______ specific dollar amount) to WGBY, A
division of the
WGBH Educational Foundation, for its general use and purposes.
WGBY is located at 44 Hampden Street, Springfield, Massachusetts,
01103. ”
If you have already written your will, a charitable bequest can be added
to your will by adding a codicil (or supplement) to the original will.
Your attorney or financial advisor may need WGBY’s tax id number,
which is 04 2104397.
Gift Annuities
A WGBY gift annuity is very appealing if you have investments in bank CDs,
bonds, stocks, or other low-yield assets. Contributing these assets to WGBY
can significantly increase your income.
A gift annuity is a simple contract whereby, in exchange for a gift of
$10,000 or more, WGBY makes quarterly payments to you for the rest of your
life. If you wish, a second person such as a spouse or a sibling, also can
receive lifetime quarterly payments.
Some of the advantages of a gift annuity are:
- You receive a current income tax deduction equal to a large portion
of your gift
- A portion of the income you receive is non taxable
- Payments can be
made to you, or another loved one
- Income from annuities can
be deferred for a number years and used to supplement retirement
- Income from the annuity is established and guaranteed when you make
the gift
- If your annuity is funded with highly appreciated
assets, you will only have to report some of the
capital gain, and the rest is spread over a number of years
Charitable Remainder Trusts
If you need current income, or future income for your retirement years,
a charitable remainder trust can provide income to you for life. It can
also be used to provide income for others.
A charitable remainder trust is set up by transferring cash or assets to
a trust (at a bank or a trust management company.) The trust pays you, or
a beneficiary that you select, an income for life or for a term of years.
Upon the death of the income beneficiary, or the expiration of the term
of years, the principal passes to WGBY for the purpose you designate.
There are two basic types of charitable remainder trusts, Unitrusts and
Annuity Trusts:
- A unitrust pays you a fixed percentage of the trust’s
value, which is revalued every year. If the trust’s value goes up,
its payout increases. Likewise, if the trust’s value decreases,
the distribution decreases.
- An annuity trust distributes your income as a fixed dollar amount – a
percentage of the trust’s initial value regardless of the trust’s
value.
Retirement Plans
Naming WGBY the beneficiary of your IRA, Keogh plan, or other retirement
plan may reduce estate taxes for your loved ones. Under current
tax law, if you leave your retirement plan assets to heirs, those assets
are first
subject to estate taxes, then to income taxes – frequently resulting
in a combined tax burden of more than 70 percent.
You may name WGBY the primary beneficiary of your retirement plan or specify
an amount from your retirement plan and receive a tax deduction and other
benefits for your generosity.
Life Insurance
Many individuals have life insurance policies whose benefits they
no longer need. If this applies to you, you may want to consider
naming WGBY the beneficiary and assigning WGBY ownership of the policy.
You may
also purchase a new policy with WGBY as the beneficiary. You
will receive a charitable deduction; and if you are removing the life insurance
policy
from your estate, you may also reduce your estate taxes.
Real Estate
A gift of your residence, a farm, vacation property or other types
of real property is a creative way to make a meaningful gift
to WGBY and receive tax benefits. The benefits include a charitable income
tax deduction
for the full fair-market value of the property, avoidance of
capital gain tax on the property’s appreciation at the time the gift is made,
and potentially reduce estate taxes and probate costs.
A gift of real property can also be used to fund a charitable remainder
trust, providing you an income over your lifetime.
For further details about any of these options, please call Jodi
Fallon Fern, Major Gifts Officer, at (413) 781-2801, x246,
or jfallonfern@wgby.org.
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