Leave a Legacy

 

Leave a legacy of Yourself

Cash

Nothing could be easier than making a gift of cash to Habitat
for Humanity. It is the most common gift and the one you
probably think of first. All cash donations are deductible, if you
itemize in the year of contribution, up to 50 percent of your
adjusted gross income. Any excess deductions can be carried
forward for the next five years. You can make year-end gifts,
or make a gift in memory or honor of a friend or loved one,
perhaps on the occasion of a birthday, graduation, anniversary
or other special day. It is the perfect gift for someone who
has everything.

Life Insurance

Do you have life insurance policies that are no longer needed?
You may either donate the life insurance policy to us, or simply
name us as the beneficiary.

Bequests

Have you made provisions in your will to benefit us? Bequests
are the most popular type of planned gifts. Anything you leave
to Habitat for Humanity will reduce the size of your taxable
estate while helping a good cause. You can leave to us a
specific bequest of a specified sum of money or a particular
piece of property. Other options are to leave a percentage of
your estate or a percentage of the residue to us after making
provisions for family and friends. For instance, you could
leave us a specific bequest of $10,000, or you could leave us
10 percent of the residue of your estate.
 

Securities

Stocks and publicly traded securities are easy to give and
offer great tax advantages. The best stocks to use for charitable
giving are those that have increased greatly in value,
particularly those producing a low yield. If you have held them
for more than one year, you will pay no capital gains tax on
this transaction, and you can deduct the full fair market value.

Bank Accounts and CDs

Are you aware that you can name us as the “payable-ondeath
beneficiary” of your bank accounts or on certificates of
deposit? You own the assets for your lifetime and have them
available for your use. Upon your death, the assets pass
directly to us without going through probate. Simply visit your
bank and request the necessary forms to name a beneficiary
on your accounts or CDs. You can change beneficiary designations
at any time.

Retirement Plan Assets

Because our tax laws often subject retirement plan assets to
the highest combined income and estate taxes, charitable
donations of these assets may be the most efficient estate
planning option. Many of the techniques discussed in this
brochure can be used to create generous charitable gifts,
usually at your death, from retirement plan assets that could
otherwise be subject to tax rates of nearly 65 percent. At the
same time, you can pass more tax-favored assets to your
family. Because of the variety and complexity of retirement
plans, you should consult an attorney or tax specialist for a
strategy best suited to your situation.

Real Estate

A gift of real estate offers you the opportunity to make a significant
charitable contribution with a tax-friendly outcome. There are
several ways to donate real estate depending on your situation.

Outright Gift

An outright gift may be the simplest solution if you own
property that is not mortgaged, has appreciated in value and
that you no longer need or use, such as a second home or
vacation property. You can deduct the fair market value of
your gift and avoid all capital gains taxes. Plus, you no longer
have to worry about the costs of continued ownership, and
you have removed that asset from your taxable estate.

Retained Life Estate

Did you know that you can transfer the deed of your personal
residence or farm to us now and keep the right to use the
property for your lifetime and that of your spouse? You will
receive a current charitable deduction in an amount that is
based upon your and your spouse’s life expectancy and the
value of the property.

Bargain Sale

A bargain sale can generate a gift that is less than the full fair
market value of the property. In this scenario you agree to sell
the property to a charitable organization at less than its fair
market value. The difference between the sale price and the
fair market value is your charitable deduction. While the tax
rules relating to a bargain sale are somewhat complex, the net
result is often more favorable than selling the property at fair
market value and making a charitable contribution from the
realized capital gain.

Gifts That Give Back to You

There are several ways you can make a significant future gift to
us while retaining, or in many cases increasing, the income you
receive from the asset. Because you receive income in return for
your gift, your charitable deduction is limited to the portion of the
gift that will ultimately pass to Habitat for Humanity. We would be
happy to discuss any of these methods with you in more detail or
share sample illustrations of how a life income gift can benefit you
first, then eventually us.

Charitable Gift Annuity

This is a simple contract between you and a charitable organization
that pays you a fixed dollar amount (an annuity) for your
lifetime and that of another individual, if desired, based upon
your age(s) at the time of your gift. The older you are, the
higher the annuity. If you use appreciated property to fund the
gift annuity, you will escape the capital gains tax on the gift
portion of the transaction and the remaining gain will be
apportioned over your lifetime. This is a wonderful way to
increase income from stocks that pay small dividends and
carry heavy capital gains.

Charitable Remainder Trust

A charitable remainder trust is a trust that will pay the donor
(and one or more other named beneficiaries, if desired) a fixed
or variable income depending on the type of trust selected.
The payments are made either for life or a period of time not
to exceed 20 years. The annual payments cannot be less than
5 percent of the initial fair market value of the trust. At the end
of the trust’s term, the balance in the trust helps support our
mission.

Charitable Lead Trust

This type of charitable trust pays income to one or more
charitable organizations, typically for a period of years, and
then the remaining assets of the trust pass to noncharitable
beneficiaries, such as family members. While this type of trust
usually does not provide a current income tax deduction, it can
effectively pass property to family members at reduced estate
and gift tax costs.