You can make a gift that costs you nothing during your lifetime. You also do not have to use cash to make your gift.
- Your bequest ensures that we can meet our goals tomorrow - without affecting your assets today. A gift may be made through a will, revocable trust, life insurance, or retirement account policy. As a benefit, your assets remain in your control during your lifetime. You can specify either a fixed amount or a percentage of your estate and can modify your bequest if your circumstances change. You can also direct your bequest to a particular purpose (be sure to check with the ABTA to ensure your gift can be used as intended). There is no upper limit on the estate tax deductions that can be taken for charitable bequests.
Here is sample bequest language you can take to your attorney:
I, [name], of [city, state, ZIP], give, devise and bequeath to the American Brain Tumor Association, whose national office address is at 8550 W. Bryn Mawr Ave., Suite 550, Chicago, IL 60631-3225, [written amount or percentage of the estate or description of property] for its unrestricted use and purpose.
- You can turn surplus life insurance coverage into a charitable gift to ABTA, or use a new policy to create an endowment from income instead of capital.
- You can name ABTA as the beneficiary of your IRA, 401(k) or other qualified plan. In doing so, you can escape both income and estate tax levied on the residual left in your retirement account by leaving it to charity. You can also continue to take withdrawals during your lifetime and retain the right to change your beneficiary if your circumstances change.
- You can give appreciated securities instead, using an asset that costs you less than the tax deduction you'll get for it today. You receive gift credit and an immediate income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them. You also pay no capital gains tax on the securities you donate.
- You can make a substantial gift to us after the sale of residential, commercial, or undeveloped real estate.
- You can give closely held stock and receive gift credit and an immediate income tax deduction for the appraised value of your shares, even if their original value was close to zero. You will also pay no capital gains tax on any appreciation that has taken place in the shares.
- You can give us personal property like books, artwork or equipment, and secure a charitable income tax deduction. We recommend you provide ABTA with an after-sale donation.
- Should you give a gift of cash it can be deducted against a larger portion of your taxable income than can gifts of appreciated assets. Cash is the simplest donation and provides us immediate benefits. Your gift can be made outright or fund one of our life income arrangements.
Examples of Split Interest Agreements
An Integrated Look at Charitable Remainder and Charitable Lead Trusts