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Table of Contents
(click on the subject you want more information on)
Bequests in Wills and
Living Trusts
Sample Language for
your will
A bequest in your will or living trust is an
uncomplicated way to help protect animals.
A bequest may take several forms. It can be
specific sum, a percentage of your estate, or the remainder of your estate
after expenses and gifts to loved ones. Bequests can include cash,
securities, real estate, houses, and personal property such as valuable
collections, art, or jewelry.
Living trusts are a popular choice because the terms of a living trust,
unlike a will, can be put into effect immediately upon your death, bypassing
probate and keeping the terms private.
When you include Lewis Clark Animal Shelter in your will or living trust,
you are entitled to join our recognition society, Humane Legacy, even if you
wish your gift to remain anonymous. Participants receive special recognition
in our annual report and announcements of special events.
For more information about leaving
a bequest to the
Lewis Clark Animal Shelter in your will,
please contact Contact: Lewis Clark Animal Shelter's Certified Public Accountant
Lonnie Ells CPA
634 Bryden Ave
Lewiston, Idaho 83501
(208)746-3681 phone
(208)746-3682 fax
lonnie.ells@clearwire.net
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As a supporter of Lewis Clark Animal Shelter, you
have demonstrated your belief in and commitment to living humanely. To
ensure that your wishes continue in the future, please remember The Shelter
in your estate plans by leaving a Humane Legacy.
Humane Legacy Society
As a member of the Humane Legacy Society, you will be making a statement
about your love and compassion for all animals today, and tomorrow.
Special recognition (including an inscription on our Partnerships For Life
Wall for bequests of $25,000 or more), a mention in our annual report, and
VIP invitations to events are but a few of the tokens of our appreciation
for those creating a Humane Legacy.
For more information about leaving a gift to The Lewis Clark Animal Shelter
in your will and the Humane Legacy program, please contact the Executive
Director at 1-208-746-1623 or
e-mail
us.
Estate Planning
Planned Giving
Making a planned gift to LCAS is a meaningful way to carry forward your
compassion and concern for animals. Additionally, this type of giving may help
you achieve specific financial goals, such as reducing or eliminating certain
tax liability.
We would be glad to discuss any planned giving option with you - in
confidence and without obligation.
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Contact: Lewis Clark Animal Shelter's Certified Public Accountant
Lonnie Ells CPA
634 Bryden Ave
Lewiston, Idaho 83501
(208)746-3681 phone
(208)746-3682 fax
lonnie.ells@clearwire.net
There are several planned giving options:
The information provided is general in nature and not intended as legal
advice. You may wish to consult with an attorney or tax advisor to determine
which giving opportunity is best for you.
Bequests
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 Leaving a legacy for animals through your will
Perhaps the most straightforward planned giving option is to make a
bequest in your will. Regardless of your age or financial status, a will is
essential to ensure that your property is distributed according to your wishes
instead of the arbitrary laws of the state
in which you live.
Bequests made through your will may take various forms:
A bequest to LCAS is not subject to Federal or estate taxes, and there's no
limit on the amount of the deduction. Most importantly, your bequest to LCAS
will help ensure the organization's ability to provide care and protection for
animals in future years.
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Charitable Gift
Annuities
Stock market volatility keeping you awake at night? An LCAS Charitable Gift
Annuity might be the perfect answer for you, providing a source of secure, fixed
income for life. Now, that should help you rest easy!
An LCAS Charitable Gift Annuity for one-life may be established with a
minimum of $5,000 and provides an immediate tax deduction (as well
as lifetime income for the annuitant). Gift annuities may be a good option for
donors age 65 and older.
Charitable
Remainder Trusts
Great giving tool for those with significantly appreciated assetsA charitable remainder trust is one of the more complex estate planning
options but provides the donor greater flexibility. CRT's can be a very good
choice for those who own significantly appreciated assets (such as rental
property) and want to receive income for life. The donor transfers the asset to
the trust, where it is sold, avoiding capital gains tax. The proceeds are
invested with the donor or other beneficiary receiving payments for life or a
set term. At the end of the trust's life, the remaining principal is gifted to
LCAS.
To set up a Charitable Remainder Trust, please consult your attorney or
estate planner.
Naming LCAS as a
Beneficiary
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If you have a life insurance policy that is no longer needed to provide for
dependants, consider making LCAS the beneficiary. This may enable you to make a
significant gift to LCAS without using any of your estate's capital. A further
option is to make LCAS both the beneficiary and owner of a paid-up policy. Doing
so will earn you an immediate tax deduction equal to the policy's cash value.
Contact the policy's issuing agent for instructions.
Some assets, such as IRAs, Keogh Plans, and other qualified retirement plans,
do not pass directly through your will and require you to name a beneficiary.
Consider making LCAS a full or partial beneficiary. Such plans can be excellent
choices for charitable gifting because they are taxed more heavily than other
assets—sometimes greater than 60 percent. However, by making LCAS the
beneficiary, the full value of the account will pass to LCAS to be used to
benefit the animals.
A relatively easy planned giving option is to buy a Certificate of Deposit
(CD) at your local bank and name LCAS as the beneficiary, payable-on-death. The
CD can remain on deposit earning interest until the holder's death, then LCAS
would receive its value. Make sure the CD you buy automatically rolls-over and
maintains the beneficiary designation.
Gifts of
Property/Real Estate
Gifts of appreciated property can be given to LCAS through a donor's will or
living trust. The donor would receive an estate tax charitable deduction for the
full value of the property; however, a qualified appraisal (obtained no earlier
than 60 days before you make the gift) is necessary to substantiate your income
tax deduction.
Making LCAS the Successor Interest of a Contract
Perhaps you're receiving payments from the sale of a business or real estate
or are receiving royalties? You may be able to designate LCAS as the successor
interest to receive any payments that continue after your death.
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Donating Stocks,
Bonds, and Securities |
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If you're looking for a way to help the animals, while also achieving
specific tax benefits, donating stocks, bonds, and/or mutual funds
might be right for you. Our staff is happy to assist you with any
transaction.
Stocks that have appreciated in value can be
subject to capital gains tax when sold; however,
by transferring your appreciated shares of stock directly to LCAS (rather
than selling them and remitting the proceeds to LCAS), you can avoid all capital
gains and resulting taxes. Plus, the IRS allows you to claim, on your itemized
Federal income taxes, the full fair market value of the shares (calculated as
the average of the high and low prices on the day LCAS receives the shares as a
charitable gift).
To make a gift of securities, or for more information, please contact:
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Lonnie Ells, CPA
LCAS Finance Director,
(208)746-3681 phone
(208)746-3682 fax
lonnie.ells@clearwire.net
An Example
Mr. and Mrs. Generosity decide they would like to immediately
make a significant gift to support the Lewis Clark Animal Shelter and receive a
charitable tax deduction as well. Reviewing their portfolio, they note their
shares of Intel Corp. have multiplied many times the original, split-adjusted,
purchase price of $4 per share. After contacting LCAS to arrange the gift and
receive transfer instructions, the G's order their broker to execute a DTC
transfer of 100 shares of Intel from their account to LCAS's account.
Here is the outcome:
|
Original value of stock |
$4
x 100 shares = $400 |
|
Current value of stock* |
$25 x 100 shares = $2,500 |
|
Capital gains tax liability if stock is sold (rather than donated) |
$2,100 ($2,500 current value - $400 original value) |
|
Capital gains tax liability if stock is donated to LCAS |
$0 |
|
Charitable tax deduction allowed with donation |
$2,500 ($25 x 100 shares) |
|
Federal tax savings realized with donation** |
$750 ($2,500 charitable tax deduction x 30˘) |
|
Other possible savings |
Will reduce Mr. and Mrs. G's adjusted gross income subject to your state's
income tax. |
*Based on high-low
average on the day LCAS receives the shares. In this example, on the day the
shares were received, Intel traded at a high of $26 and a low of $24, for an
average price of $25.
**Assuming Mr. and Mrs. G are in the 30
percent tax bracket.
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Important Tips
- Please notify LCAS's Development
Office of your intent to make a gift of securities BEFORE any
transfer occurs. This will help us ensure the appropriate steps are taken and
you receive all necessary tax documentation. Additionally, we will provide you
with LCAS's account information, which your broker will need to execute the
transfer.
- To avoid capital gains tax liability, you must TRANSFER the shares
to LCAS, as opposed to selling them. Be
sure your broker clearly understands your intent. The method most commonly
used is called a 'DTC Transfer'.
- To facilitate such transfers, LCAS maintains accounts with many brokerage
houses.
- Under-performing stock can also be a good candidate for charitable giving.
The capital loss incurred on the sale of such stock can be used to offset your
other capital gains. Then, the cash proceeds from the sale can be given as a
charitable donation.
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