Many of our friends and supporters would like to make a significant and lasting impact on the YMCA of Greater Moncton through a major gift but find they are unable to realize this goal today. They often find they need their assets in order to provide for their family’s day to day cost of living. Planned giving allows people to realize their goals of philanthropy by planning today for a future gift out of their estate.
You may already be familiar with many types of planned giving. A few of these are described briefly below.
By far the most common form of planned giving, an outright charitable bequest is made through terms of a will. It may be either a specified amount, a percentage of a final estate or the residual of an estate after loved ones have been provided for or other specific bequests have been made.
Life Insurance Policy:
A charity may be named as beneficiary on an existing life insurance policy or you may want to purchase a life insurance policy specifically for the purpose of gifting to the YMCA of Greater Moncton. Using life insurance as a planned giving tool can allow many people to leave much larger gifts than otherwise possible.
A donor may designate a charity as a beneficiary of a retirement plan or annuity, payable upon death. As a not-for-profit, the charity would not be subject to taxes on retirement plan assets, which non-charity heirs would be subject to.
Planned gifts can enable you to maximize on significant tax benefits. Many times, these tax advantages will make it possible for you to make a greater gift than you thought possible, while also benefiting your family and heirs. With careful planning today, you may reduce or eliminate estate, inheritance, or gift taxes, allowing your family and the charities you support to receive the full benefits of your life’s work. Certain gift plans actually result in a greater amount of wealth passed on to family.
As with all financial decisions, a planned gift should be designed with care and in consultation with your personal financial planner and lawyer.