Your bequest helps us insure addiction free futures. Our Development Officers will work closely with you and your advisors to design the giving vehicle that is right for your estate plan. Please contact us at Development@AshleyTreatment.org to discuss the many options and become a part of the Father Joseph Martin Society of Estate Plan Donors.
Estate Planning Techniques by Which to Make Charitable Gifts:
A charitable bequest offers the simplest approach. You do not have to rewrite your current documents. You simply add an amendment, called a codicil, to your will or living trust. Your bequest is entirely under your control during life and becomes irrevocable only at death. An individual simply advises their lawyer that he/she would like to make a gift to charity upon his/her death. A gift to charity at death is 100% deductible on the decedent’s estate tax return.
Here is some suggested language:
“I give and bequeath to Ashley, Inc. (DBA Ashley Addiction Treatment) located in Havre de Grace, MD the sum of ____________ dollars ($ _________). (Or state a percentage of your estate, or describe real or personal property, including exact location.) For the benefit of its general purposes (or specify the program you wish to support).”
A designation in your IRA or other retirement plan may be a very cost-effective way of making a gift to Ashley. If you leave your retirement plan to your children, they will have to pay income tax on either a lump sum distribution or the income stream from the plan. Ashley does not pay this tax.
As with an IRA, a charity may be listed as the beneficiary of a life insurance policy. A charity may be listed as a primary beneficiary or a secondary beneficiary.
Charitable Remainder Trust
A donor establishes this type of trust with assets that have appreciated in value, with the donor as the income beneficiary for his lifetime (or for a term of years) and a charity as the remainder beneficiary. The donor receives an annual percentage payout from the trust, and a tax deduction when he establishes the trust. The older the donor and the lower the percentage payout, the higher the charitable deduction; the younger the donor and the higher the percentage payout, the lower the deduction. This trust allows an individual to sell a single asset income tax deferred inside the trust and to invest the proceeds inside the trust in a diversified manner. The donor pays income tax on the distributions he receives from the trust. On the donor’s death, the assets in the trust are distributed to the charity named by the donor in the trust.
Charitable Lead Trust
This type of trust provides for a distribution to charity for a term of years, after which time the assets in the trust are generally distributed to the donor’s children or grandchildren as the remainder beneficiaries. The purpose of this type of trust is to make a gift to one’s family at a discounted value, while at the same time benefiting charity.