Planned Giving is an increasingly attractive alternative which can benefit you, the hospital and future generations. It is a long range approach with the potential to offer you significant tax benefits while maintaining financial security for you and your family. Planned giving allows the donor to consider gifts that include bequests as designated in a will, life insurance policies, marketable securities, annuities and real estate.
The Foundation advises that as you consider your options it is best to consult with a financial planner or lawyer so you understand all the implications, and choose the best arrangement for your personal situation. When you make your decision, please also consider discussing it with your family in advance. It can leave a lasting legacy when you share your concern for continuity at Louise Marshall Hospital with those you love.
A will is an important vehicle for making provisions for loved ones. It may also ensure that Louise Marshall Hospital receives a final and meaningful gift from you. When a will is settled and funds are disbursed, this gift is called a bequest. Your lawyer can advise you of the implications of making a bequest, especially regarding how the funds are disbursed; and how a charitable gift affects income and reduces taxes.
Cash, real estate or other valuables such as property, stocks, bonds or guaranteed income certificates may be designated in advance in a will. A will is the best way to assign a percentage of your estate to the Foundation. When the Foundation receives a bequest, it issues a tax receipt to your estate. It is important to note that when adding the Foundation to your will, please use our complete legal name: The Mount Forest Louise Marshall Hospital Foundation Corporation.
A gift of real estate opens the possibility of a large gift without diluting liquid assets. There are a couple of options: you may make an outright gift resulting in a tax receipt based on fair market value of the property; or you may make a gift of your property while retaining the right to reside in the home. The Foundation advises to seek professional counsel.
Life Insurance Policy+
Easy to arrange, a gift of life insurance to Louise Marshall Hospital is another type of planned gift. A life insurance policy you already have or one that you buy specifically for charitable purposes is potentially beneficial to you today and upon death.
A life insurance representative explains options available to you. Understanding who owns the policy and who the beneficiary is are key decisions. Many tax benefits are possible when the Foundation is named as both the owner and the beneficiary. For example, if you still make premium payments to a current policy, the cumulative value of these payments over the year may be used annually as a tax deduction.
An existing or paid up policy may have been needed at one time to protect your family. But once the children are grown, you may decide it is no longer needed. In this case, changing the beneficiary to the Foundation means that at the time of death, a tax benefit is realized in the final income tax year (before the estate). If you change the ownership and the beneficiary to the Foundation, a transfer of property means you get the tax benefit in the year the transfer takes place.
A bequest of life insurance is distributed immediately after death and does not affect the probate calculation when filing the estate income tax. Purchasing a life insurance policy to replace property given to the Foundation (a process called wealth replacement) should be discussed with a financial planner to determine whether it could be beneficial to you. It is important to note that when including the Foundation as the owner or beneficiary of a life insurance policy, please use the legal name - The Mount Forest Louise Marshall Hospital Foundation Corporation.
Marketable securities are stocks, bonds and mutual funds. They are transferable and usually easy to value. As such, they make excellent charitable gifts entitling you to a tax deduction, based on the fair market value of the security at the close of trading on the day the transfer is made to the Foundation. The tax receipt is immediate, and can be used for the taxation year in which the gift is made.
Annuities are available for special circumstances allowing you to make a significant gift to the Hospital immediately, in exchange for lifetime income.
Using the donor's gift, the Foundation purchases an annuity. The annuity provides income for the donor. At the time of death, the Foundation would receive the remainder of the investment.