A planned gift is a charitable gift made through estate plans or through a delayed financial vehicle. Often called a legacy gift, this can be designated to a specific program, can support general operations, or, above a dollar threshold, can name a new program after you or a loved one.
Main Types of Legacy Gifts:
- A bequest is a gift made via a will or other estate plans. A specific dollar amount or the residual of the estate can be provided.
- A charitable remainder trust (also called a sale and charitable remainder unitrust) can provide the donor income and avoid capital gains taxes while later providing a charitable gift to AATS Foundation.
- Gifts of appreciated assets including retirement funds like 401k funds, life insurance, or real estate can reduce taxes on the estate or can remove specific highly-taxes assets in a way that magnifies the charitable gift given.
The following information will help you identify the gift that ensures you meet your personal goals.
GOAL: REDUCE OR DEFER INCOME TAXES
BEST OPTION: Bequest or beneficiary designation, real estate, charitable remainder unitrust, gift of a retirement fund
GOAL: REDUCE OR ELIMINATE CAPITAL GAINS TAXES
BEST OPTION: Bequest or beneficiary designation, real estate, charitable remainder unitrust, and some charitable lead trust
GOAL: LOWER ESTATE TAXES
BEST OPTION: Bequest or beneficiary designation, real estate, charitable remainder unitrust, and charitable lead trust
Why should I designate my planned gift to AATS Foundation instead of AATS?
A: Great question! The AATS Foundation will most likely benefit your estate more. AATS Foundation is recognized as an exempt organization from federal income tax as described in Section 501(c)(3) the Internal Revenue Code. Thus donations are tax deductible. Whereas AATS is recognized as a 501(c)(6) organization so contributions to AATS are not deductible as charitable contributions.
If you would like to continue your support for the AATS Foundation by providing a gift in your will, please consider using the following language:
"I give, devise, and bequeath to the AATS Foundation (Tax ID #23-7288866), located at 800 Cummings Center, Suite 350-V, Beverly, MA 01915 the sum of $______ (or a description of the specific asset), for the benefit of the AATS Foundation for its general purposes."
Or, if you prefer to provide a gift of the remainder of your estate after listed beneficiaries in your will, please consider including:
"I designate residuals of the estate, if any, to the AATS Foundation."