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Frequently Asked Questions:
Q -What is Estate Planning?
- A - Estate planning is one of the most important steps any person can take to make sure that their final property and health care wishes are honored, and that loved ones and favorite causes are provided for in their absence. Though often overlooked or put off in favor of more immediate concerns, a comprehensive estate plan can resolve a number of legal questions that arise whenever anyone dies: What is the state of their financial affairs? What real and personal property do they own? Who gets what? Does a personal guardian need to be appointed to care for minor children? How much tax will need to be paid in order to transfer property ownership? What funeral arrangements are appropriate? What Charity cause(s) is/are a beneficiary?
Q -Why should I go to the trouble of planning my estate and writing a will?
- A - Estate planning pays real dividends in results achieved, in dollars saved, and, most important, in security and peace of mind. And it doesn't have to be expensive, traumatic, or even all that time consuming. An estate plan is your blueprint for where you want your property to go and what wishes you want carried out after you die. Your Estate Plan, or Will, becomes the Legacy you leave behind.
Q -Isn't an estate plan just for old people?
- A - Absolutely not. One glance at the news demonstrates that far too many young and middle-aged people die suddenly or become mentally or physically incapacitated. An estate plan can be tailored to anticipate both of these contingencies.
Q -Is there a way other than in my Will or Estate Plan to assist the National Reye's Syndrome Foundation?
- A - Yes, there is the gift of Life Insurance. You may own an insurance policy that has a substantial cash surrender value, yet the original purpose for the protection no longer applies. The policy might have been purchased initially to provide financial security for a spouse now deceased, to educate children now grown, or for liquidity to pay death taxes when liquid assets were in short supply. This policy can be a sort of hidden asset, available to be used for your philanthropic purposes.
For a gift of a paid-up policy, the tax deduction is the cost of replacing the coverage with a comparable policy. The deduction cannot be greater than your net investment in the policy (total premiums paid less any dividends received). The charitable deduction is reduced by any outstanding balance of a policy loan, which may also be considered additional taxable income.
To qualify for the federal charitable deduction on a gift of an existing policy, you must be sure to name the National Reye's Syndrome Foundation as owner and beneficiary.
If premiums on the policy are still payable, there are two options to be considered. You may stipulate that the assignment of ownership of the policy at its current value is the total charitable gift, immediately available for our use. In that case, we might surrender the policy for cash. Or we might decide to accept an amount of paid-up insurance. In either case, you are relieved of the obligation to make further premium payments.
Q -How do I include the National Reye's Syndrome Foundation in my Will?
- A - You can include a General Bequest that provides a specific amount of money, a percentage of your estate or a certain piece of property, be given to the National Reye's Syndrome Foundation at the time of your death. The following sample language illustrates how a General Bequest to the NRSF might be phrased in your will or trust:
I give, devise, and bequeath { ____%(percentage) or _________ (item) or $__________ (amount), of my Estate, after taxes and debts have been satisfied, to the NATIONAL REYE'S SYNDROME FOUNDATION, Inc, an OHIO 501(c)3 nonprofit corporation, located in Bryan, Ohio.
- You can also include a Residual Bequest that designates that the remainder or balance of your estate goes to the National Reye's Syndrome Foundation after your will or trust has made gifts of money or property to your loved ones. The following sample language illustrates how a Residual Bequest to the NRSF might be phrased in your will or trust:
I give, devise, and bequeath all the rest, residue, and remainder of my property, real, personal, or mixed; after all
personal bequests have been made, to the NATIONAL REYE'S SYNDROME FOUNDATION, Inc, an Ohio 501(c)3 nonprofit corporation, located in Bryan, Ohio.
Q -Are there ways to avoid federal estate taxes?
- Yes, although there are fewer ways than many people think, or hope, there are. Here are some of the most popular:
- Tax-free gifts. You can give up to $13,000 per calendar year per recipient without paying gift tax. You can also pay someone's tuition or medical bills, or give to a charity, without paying gift tax on the amount. This reduces the size of your estate and the eventual estate tax bill.
- Charitable trusts, which involve making a sizable gift to a tax-exempt charity like the National Reye's Syndrome Foundation.
- An AB trust, where spouses leave their property in trust for their children, but give the surviving spouse the right to use it for life. This keeps the second spouse's taxable estate half the size it would be if the property were left entirely to the surviving spouse.
- A "QTIP" trust, which enables couples to postpone estate taxes until the second spouse dies.
- Life insurance trusts, which let you take the value of life insurance proceeds out of your estate.
Q -I've decided to do an Estate Plan, and wish to include the NRSF, so what do I do now?
- A - If you wish to make a gift to the National Reye's Syndrome Foundation, consider talking to us about your plans before your will or estate plan is finalized. Many people who make a planned gift - be it a bequest or life-income arrangement - fail to discuss it with the charity. Often the reason is a reluctance to discuss one's personal financial affairs with anyone other than one's accountant or lawyer. However, significant benefits can arise from including the NRSF in the discussion.
First, through discussion, you and your advisors can tailor a planned gift that meets our future needs and addresses your desires to benefit us. This will ensure that your philanthropy has the effect you want.
Second, knowing your plans allows us to involve you in our activities during your lifetime and keep you abreast of current programs, including how we are addressing issues of particular interest to you.
Third, we will want to acknowledge your special contribution. We, like other charities, often go to great lengths to thank our donors. However, planned gifts are promised gifts that often will not pass to us until after your death. Unless we know about your planned gift, we cannot appropriately thank you. Such gifts should be recognized, as they represent generous forethought on your part and often have a profound impact on us.
Creating a personal Legacy is a deliberate process that is enhanced by involving the NRSF in your estate planning stages. It can help ensure that your planned gift is what you want and affords us the opportunity to recognize you today for your future generosity.
Q -What can I do to minimize the costs of estate planning?
We offer more information about planned giving through downloadable brochures, workbooks, and IRS publications:
Please feel free to contact us at; 800-233-7393, or Email Us with your questions.
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