WHAT MY LOVED ONES SHOULD KNOW
Maintaining a detailed and up-to-date inventory of all your assets will help you
and your family avoid losses, delays, confusion and unnecessary expenses. It also
helps to inform the executor of your estate about the location of your stock
certificates, bankbooks and other assets.
Your completed inventory can list detailed information about:
- The value and location of assets
- Your debts and/or liabilities
- The location of tax returns and financial records
BEQUEST
Through your will or living trust, you may be able to provide substantial support
to the Wheelchair Foundation without diminishing the assets available to you
during your lifetime. After providing for your loved ones, you may decide to
give a specific amount or a percentage of your estate. If you have a taxable
estate, your heirs can realize important estate tax savings from this type of
contribution because a bequest to the Wheelchair Foundation may be deducted from
the taxable estate when determining estate taxes. Often a bequest can be done with
an amendment to your existing will.
The following is an example of how one would give what remains of your estate after
other bequests have been satisfied:
“I give, devise, and bequeath all (or a specified fraction of) the rest,
residue, and remainder of my estate, whether real or personal, of every kind and
description, and wherever situated to the Wheelchair Foundation, a California
Not-for-Profit corporation having its principal office at
3820 Blackhawk Road, Danville, California 94506, for its general corporate
purposes.”
To give a dollar amount or percentage of your estate:
“I give, devise, and bequeath the sum of $ (or % of my estate) to the
Wheelchair Foundation, a California Not-for-Profit corporation having its
principal office at 3820 Blackhawk Road, Danville, California, for its
general corporate purposes.”
LIFE INCOME GIFTS
There are many ways to make a gift of cash, securities or other assets to the
Wheelchair Foundation, and retain life-income for yourself, spouse and/or
others -- with the remaining principal passing to the Wheelchair Foundation at
the death of the last beneficiary (or, in some cases, after a term of years).
These gifts provide sustained income and tax deductions. When appreciated assets
are used, taxes on gains can be avoided.
One example of a life income plan is a gift annuity. In return for an irrevocable
gift of cash or securities, the Wheelchair Foundation agrees to pay you a fixed
dollar amount during your life or the life of a designated loved one (must be at
least 65 years of age). The rate of the annuity is based on the age(s) of the
annuitant(s). You receive an income tax deduction for a portion of the amount
transferred if you itemize and part of each payment is tax-free for a period of
years.
A deferred-payment gift annuity is an arrangement through which people can make
present gifts, receive an immediate income tax deduction, and defer the beginning
of the annuity payouts for a period of years. The value of this plan for a donor
50 years of age who doesn't need more current income (39.6 percent tax bracket)
and must begin taking distributions from his/her IRAs and qualified retirement
plan is illustrated below:
| Gift Amount |
$25,000 |
| Annuity Rate |
15.2% |
Annual Payments
(Beginning at age 80) |
$ 5,270 |
Charitable Deduction
(Current Year) |
$24,430 |
REDUCE TAXES
A charitable lead trust is an advantage for those who wish to receive a current
income tax deduction and transfer property to their heirs while minimizing transfer
taxes. A gift of an income stream to the Wheelchair Foundation is made from the
trust principal for a length of time you designate. After that time, the trust
principal reverts to you or is distributed to others that you specify.
This information is not intended as specific legal or financial advice. Consult
your attorney/tax adviser when considering any legal or financial matters.
RETIREMENT PLAN
Naming the Wheelchair Foundation as a beneficiary for funds in a retirement plan
is very easy. The person or financial institution handling your Individual
Retirement Account, other retirement plan or profit-sharing account can help.
APPRECIATED SECURITIES
Gifts of stocks, bonds and mutual funds make very attractive contributions and
can offer you capital gains tax incentives when they have been held long term.
In addition, amounts up to 30 percent of your adjusted gross income may be deducted
for the year the gift is made; any excess can be deducted over the next five years.
REAL ESTATE OR PROPERTY
Another way to avoid or delay capital gains tax is through a gift of real estate
that has been held long term. A tax deduction for the fair market value of the
property is also permitted equal to up to 30 percent of your adjusted gross income.
Donors are asked to complete a Real Property Disclosure Checklist for review.
LIFE INSURANCE
Giving through life insurance can allow you to make a gift of assets you no longer
need for your family's security. When a life insurance policy is transferred to
the Wheelchair Foundation as a donation, the cash value of the policy can be
deductible. You can also assign a policy's ownership to the Wheelchair Foundation
and name it as irrevocable beneficiary. Subsequent premiums you pay are tax
deductible.
CASH GIFT
The most convenient method of making a gift to the Wheelchair Foundation may be
by cash or check. A gift of cash is tax-deductible for all taxpayers who itemize.
Amounts up to 50 percent of your adjusted gross income may be deducted for the
year the gift is made; any excess can be deducted over the next five years.
PLEDGE
Gifts of cash, appreciated securities or other assets can be made over a period
of time. Our accounting department can work with you to schedule reminders on
specific dates.
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