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What Legacy Will You Create?

For many of us, there is a compelling need to make a difference – to leave a lasting impact on the people who are dear to us and the world in which we live. “Planned giving allows you to create your legacy while helping your community,” said CalvertHealth Foundation Board Member Bill Gaines.
A bequest is perhaps the easiest and most tangible way to have a lasting impact on the people and organizations that mean the most to you. A bequest may also be an effective way to make a gift to charity and to lessen the burden of taxes on your family and estate.

An Easy Gift to Make

A charitable bequest is written into a will or trust that directs a gift to be made to a qualified exempt charity when you pass away. Leaving a gift in your will is a wonderful way to make a lasting gift and provide for your favorite charity into the future. Better yet, a charitable bequest can help you save estate taxes by providing your estate with a charitable deduction for the value of the gift. With careful planning, your family can also avoid paying income taxes on the assets they receive from your estate.

Gifting a Specific Asset

A retirement asset like an IRA account makes an excellent bequest to charity. By designating a charity as the beneficiary of part or all of your IRA, the full value of the gift is transferred tax free at your death and your estate receives a charitable deduction. If you wish to leave your IRA to your spouse at your death, you may also designate a charity as the secondary beneficiary of your account. Contact your IRA or retirement account custodian to obtain a beneficiary designation form to make a bequest from your IRA.

An insurance policy makes a nice bequest to charity. As an asset of your estate, an insurance policy is taxable at your death. However, if the policy is gifted to charity, your estate avoids paying tax on the value of the policy and receives a charitable deduction for the gift. You may generally name anyone as beneficiary of your insurance policy and change your designation at any time by contacting your insurance company.

“Another option,” said Gaines, “is to consider making a gift now through a qualified charitable distribution from your IRA*,which offers tax benefits and may satisfy your required minimum distribution.”

*We always recommend you talk to your tax professional for advice.

For more information please visit the CalvertHealth Foundation Planned Giving website at: www.calverthealthlegacy.org
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