Bequests are one of the easiest and most common ways to make a gift and work particularly well for those who are unable to make an immediate outright gift, but would like to help us in the future. Bequests ensure that your generosity will continue beyond your lifetime, provide your heirs with potential tax benefits, and inspire others to follow your example. There are three basic types of bequests:
General bequests take the form of a designated sum of money.
Specific bequests take the form of a gift of property, such as stock or other securities.
Residuary bequests are assigned from what remains of the estate after all expenses have been paid and all general and specific bequests have been honored.
A relatively inexpensive way to leave a significant gift is through life insurance. You may donate a paid-up policy, buy a new policy and make ZERO TO THREE both the owner and beneficiary (the premium payments can be tax deductible), give a single premium policy for maximum benefits, or name ZERO TO THREE as a beneficiary.
Life income trusts allow you to leave a gift to ZERO TO THREE while still receiving an income for your life and/or for the life of a spouse or other loved one. You will receive greater tax savings if you use appreciated property, such as stocks, to fund a gift annuity. Life income gifts include the following:
- A Charitable Gift Annuity enables you to transfer cash or marketable securities to ZERO TO THREE in exchange for a current income tax deduction and ZERO TO THREE’s promise to make fixed annual payments to you for life. Annuity payments can begin immediately or can be deferred to some future date.
- A Charitable Remainder Annuity Trust is a custom-designed and individually managed trust that enables you to retain a fixed income for your lifetime or a fixed term of years, claim a current income tax deduction, and make a future gift to ZERO TO THREE.
- A Charitable Remainder Unitrust is a custom-designed and individually managed trust that enables you to retain a variable income for your lifetime or a fixed term of years, claim a current income tax deduction, and make a future gift to ZERO TO THREE.
With a charitable lead trust, you transfer property, such as securities, real estate, or partnership interests, to a trust. Income from the trust property is directed to ZERO TO THREE for a period of years. At the end of the period, the trust becomes the property of the individuals named by the donor, such as children or others, or it can revert to the donor. The trust property is generally appreciated and transferred with significantly reduced gift or estate taxes.
Please Note: This website provides general information only and is not intended as legal or financial advice. Individual financial situations are unique, and ZERO TO THREE recommends that each person contemplating a planned gift consult with his or her own financial or legal adviser.