Make a Planned Gift
IRA FUND TRANSFER
FOR DONORS WHO ARE 70½ YEARS OLD OR OLDER
Thanks to charitable IRA legislation, you can make lifetime gifts using funds from your individual retirement accounts (IRAs) through 2009 without any undesirable tax effects. Donors who wish to support COTS and who are considering this type of IRA gift should know that it can be accomplished simply and without tax complications, while they are living and able to witness the benefits of their generosity.
THE CRITERIA FOR THIS TYPE OF GIFT ARE:
- Donors must be 70½ years old or older at the time of the gift.
- The gifts do not total more than $100,000 in 2009.
- Gift funds are transferred directly from an IRA.
- The gifts to qualified public charities. (This excludes gifts made to charitable trusts, donor advised funds, charitable gift annuities and supporting organizations.)
Note: You can make a gift from your IRA even if you don’t have to take a required minimum distribution.
EXAMPLE: HOW IT WORKS
Sylvia, age 80, has $450,000 in an IRA and wishes to contribute $25,000 this year to COTS. If she transfers $25,000 from the IRA directly to COTS, she will avoid paying income tax on $25,000. However, Sylvia will not be able to use it as a charitable deduction — it is a pure wash. It is an easy and convenient way for her to benefit COTS without tax complications.
WANT TO PUT YOUR IRA TO WORK TODAY?
Simply contact your IRA custodian for the forms necessary to transfer the desired gift amount directly to the Committee on Temporary Shelter (COTS).
BEQUEST DESIGNATION (WILL CODICIL)
A bequest is a gift made through your will or living trust. Drafting a will should be arranged through an attorney. Distributing your estate by means of a professionally drafted will or living trust ensures that your wishes will be carried out. They can also serve as a creative vehicle for making a thoughtful gift to the Committee on Temporary Shelter (COTS).
For many people, a bequest offers the opportunity to make a larger gift than would be possible during one’s lifetime. A bequest gift also reduces assets subject to estate tax.
Donors who wish to name the Committee on Temporary Shelter (COTS) in their wills or other estate plans, should consider the following draft language for these documents. Please consult with an attorney when writing your will to ensure that your wishes are clearly articulated.
An outright bequest allows a specific piece of property (e.g., stocks, real estate, bonds), an amount of money or a percentage of your estate to be given to support COTS. “I give to the Committee on Temporary Shelter (COTS) the sum of $_____ (or describe the real or personal property) to be used for its general purposes.”
Donors wishing to leave the remainder of their estates to COTS once all outright bequests have been made, may designate to receive a residuary bequest. “I give the Committee on Temporary Shelter (COTS) all (or ___%) of the rest, residue and remainder of my estate to be used for its general purposes.”
Donors may also choose to remember COTS by way of a contingent bequest allowing an estate distribution if, and only if, one or more of the named beneficiaries die before the donors: “I give the residue of my estate to my brother, [John]. If my brother [John] does not survive me, I give the residue (or ___%) to the Committee on Temporary Shelter (COTS) to be used for its general purposes.”
The Committee on Temporary Shelter (COTS), is a non-profit, charitable organization, organized and existing under the laws of the state of Vermont, with principal business address at PO Box 1616, VT 05401. Our federal tax ID number is 03-0285606.
LIFE INSURANCE BENEFICIARY DESIGNATION
Life insurance is an excellent way to make a charitable contribution. With a life insurance policy, you can make the Committee on Temporary Shelter (COTS) the sole or partial beneficiary. However, if you own or purchase a life insurance policy and make COTS the owner and beneficiary, you can deduct the premiums as a charitable gift.
We advise donors to consult with their accountant or tax attorney to ensure that they are able to take full advantage of their tax deductions.
For more information on life insurance beneficiary designation, contact Becky Holt at 802-864-7402.