Types of Planned Gifts


Types of Planned Gifts


Making a gift to UPMC Chautauqua in your Will creates a wonderful legacy that will help secure and improve the future of health care in Chautauqua County and the surrounding area. If you are not ready to redraft your entire Will, you can also make a bequest in a codicil. If you have a Living Trust, you can include your bequest there.

Following is some sample bequest language:

I give $______ to The Woman’s Christian Association of Jamestown, N.Y. (UPMC Chautauqua) or W.C.A. Foundation, Inc., located in Jamestown, New York, to use for its general purposes or as its Board of Directors directs.

I give ___ shares of _______________ stock to W.C.A. Foundation, Inc., located in Jamestown, New York to create an Endowed Fund for _________________________.

I give ___ percent of the remainder of my estate to The Woman’s Christian Association of Jamestown, N.Y. (UPMC Chautauqua) or W.C.A. Foundation, Inc., located in Jamestown, New York, to use for its general purposes or as its Board of Directors directs.

You can also create a Trust or give specific property in your Will.

Example: Mrs. C volunteered at UPMC Chautauqua for more than twenty years. Some of her fellow volunteers became her closest friends. She also utilized UPMC Chautauqua  dozens of times for her own health needs, some major and some minor. In fact, two of her children were born there. Each year she gave a small gift to UPMC Chautauqua. She would have liked to have given more, but needed to protect her income just in case. To satisfy her wish to support UPMC Chautauqua in perpetuity, she decided to include the W.C.A. Foundation in her Will. Making a bequest gave her the opportunity to make the bigger gift she always wanted to make. In addition, her bequest could endow her annual gift, making sure that UPMC Chautauqua never had to lose the support she gave each year.

Life Income Gifts

With life income gifts, like a Charitable Gift Annuity or Charitable Remainder Trust, not only do you make a wonderful gift to UPMC Chautauqua, but you or a loved one also can receive income from the gift until it matures.

As in the story below, life income gifts can provide great tax benefits. You get a charitable deduction now for the calculated value of the gift and you receive income from the gift for life. If you fund the gift with appreciated property like stock, you also save capital gains tax when the trust sells the property, giving the trust even more assets to reinvest.

Example: Mr. G has some stock that has done beautifully – more than doubling in value since he bought it. The stock does not produce much income. Mr. G has considered selling the stock and reinvesting the money to boost his income, but after paying capital gains tax, he would not have as much to reinvest. Mr. G’s financial advisor recommended that he consider a life income gift to a charity. Mr. G would give the stock to UPMC Chautauqua  and create a Charitable Gift Annuity or Charitable Remainder Trust. UPMC Chautauqua would then pay Mr. G a fixed income for the rest of his life. On Mr. G’s death, the remaining value of the principal would support UPMC Chautauqua and he could determine if that would be through an endowed fund.

Mr. G chose to put the stock into a Charitable Remainder Trust. In addition to boosting his income, he got a current income tax deduction for the value of the gift to UPMC Chautauqua .

Charitable Lead Trusts

If you are considering how to pass your estate to children and grandchildren without overwhelming estate taxes, consider a Charitable Lead Trust. The income from a Charitable Lead Trust can go to UPMC Chautauqua, and the remainder, at the end of the trust, goes to your children, grandchildren, or others you designate.

Example: When Mr. and Mrs. L sold their business to retire, they were lucky enough to get more than $20 million. They were thrilled at the thought of leaving significant inheritances for their grandchildren. They were stunned when their attorney told them that taxes would claim almost three-quarters of that before the gift could reach their grandchildren. Their attorney knew that they had supported UPMC Chautauqua for years and suggested a Charitable Lead Trust. By transferring the money to a trust now and giving some to charity, the Ls could reduce the value that the government put on the transfer, also decreasing the bite that taxes would take before the funds reached their grandchildren. UPMC Chautauqua would get a wonderful gift of income from the trust for years. In addition, the Ls were teaching their grandchildren by example the value of supporting the charitable organizations in the community.

Retirement Plan Gifts

Retirement accounts (or any assets subject to income tax, like U.S. Savings Bonds) are great choices for charitable bequests because they can be so heavily taxed in an estate. The transfer must be carefully planned, so be sure to talk to us or to your professional financial advisor. Congress is considering legislation that might make charitable giving from retirement accounts even easier; for example, it may allow retirement fund assets to roll directly into Charitable Trusts.

Example: Mrs. C, and her husband, before his death, carefully saved throughout their working years in their retirement accounts. Mrs. C also has other investments and a house. Luckily, the retirement accounts have grown large enough so that Mrs. C has more than enough to support her through retirement.

She plans to leave most of her estate to her children and make bequests to several charities she cares about, including UPMC Chautauqua.  Her advisor has told her that any assets left in the retirement accounts after her death will face both income and estate tax – her children may get little more than 20% after taxes. If she leaves the retirement accounts to charity, charitable deductions eliminate all the tax on the accounts. Mrs. C has decided to change the successor beneficiaries of the retirement accounts to the UPMC Chautauqua and other charities, leaving her other, less heavily taxed assets to her children.

Insurance Gifts

Life Insurance gifts can be new policies or existing policies, like Mr. K’s. Those considering gifts or Life Insurance may either keep the right to change the beneficiary or give ownership of the policy to the charity. If you keep the right to change the beneficiary, you do not get a current charitable income tax deduction (your estate will still get a charitable deduction). Giving ownership of the policy will give you a current income tax deduction for approximately the cash value of the gift and will remove the value of the policy from your estate.

Many people who give ownership of a policy to a charity decide to continue paying the premiums. If they do, they get a charitable deduction each year they pay.

Example: Mr. K is a gentleman in his late 50’s. He is divorced, with three grown children. Twenty-five years ago, Mr. K, the primary earner for his family, took out a Life Insurance policy to protect his young family. The policy no longer serves his needs. Mr. K decided to give the policy to UPMC Chautauqua. Mr. K has now made a generous gift that UPMC Chautauqua will receive upon his death.

Real Estate Gifts

Under the right circumstances, property can be a great gift for UPMC Chautauqua and for you. UPMC Chautauqua cannot accept all real estate gifts, so please talk with us and with your professional advisor if you are thinking about a gift of real estate.

Property can sometimes be used to fund life income gifts. Mr. and Mrs. M could choose to use their vacation home to fund a Charitable Remainder Trust, drawing extra income from the trust once the property is sold. Giving property that has increased in value can also save you capital gains tax.

Example 1: Ms. T, who just turned 78, has lived in her house in Union for 30 years. Her two children have settled out of state. Ms. T would like to make a gift to UPMC Chautauqua.  She considered a cash bequest in her Will, but wondered whether she could leave the house instead, saving her children the trouble of selling it.

After talking with her advisors and with the WCA Office of Development, she decided to make a current gift of the house and retain a life estate. The retained life estate means that for the rest of her life Ms. T will be able to live in and maintain the house. Because she is making the gift now, instead of in her will, she also gets a charitable deduction now on her income taxes for the value of the gift.

Example 2: Mr. and Mrs. M are retired and living in Arizona. They care about UPMC Chautauqua, and would like to make a generous contribution. But, they are also concerned about having enough income to last through retirement and don’t want to use up their retirement accounts or their savings and investments. Mr. and Mrs. M decided, instead, to give their vacation house to UPMC Chautauqua.

We invite you to join The 1885 Society and demonstrate your ongoing commitment to the future of UPMC Chautauqua. If you are interested in becoming a member of The 1885 Society, or have already completed a planned gift which supports UPMC Chautauqua , please contact:

Kristin Melville, Executive Director – 716.664.8665

WCA Foundation’s office is located: 51 Glasgow Avenue, Building F, P.O. Box 840, Jamestown, NY 14702-0840 | 716.664.8665