Giving to benefit the Future
A bequest is a gift made through your will or living trust and is the most popular type of deferred gift to the Endowment. There are many good reasons for its popularity. A bequest is revocable, meaning that you retain full control over your assets during your lifetime should you need them. It’s flexible — you can name as many charitable beneficiaries as you would like and specify the amount or percentages each will receive. In addition, your estate is entitled to an estate tax deduction for the full amount of the bequest gift.
There are different kinds of bequest gifts you can make:
- A general or pecuniary bequest leaves a certain dollar amount.
- A specific bequest leave a piece of property, such as stock or real estate.
- A residual bequest leaves all of a portion of what remains from an estate after debts, taxes, expenses and other bequests have been paid.
- A contingent bequest leaves assets only under certain conditions – if a spouse or other beneficiary does not survive you, for example.
Unless specified otherwise, gifts to AFE are added to the corpus of its Endowment, where principal is preserved and only a portion of the fund is spent in a given year. With a gift to the Endowment, you ensure that your support continues in perpetuity, for the benefit of future generations. Your gift truly creates a living legacy.
As you consider a bequest to the AFE, you and your attorney may find it helpful to have sample bequest language for different types of bequest provisions. If you have a revocable living trust, similar language can be included in the provisions of the trust instrument.
Retirement Plan Assets
You can designate AFE as the beneficiary of your IRA or other retirement assets such as 401(k) and 403(b) plans (AFE will receive the funds upon your passing), or you can make outright gifts during your lifetime from these same assets (AFE has the funds to use now). You can leave just a portion to AFE or the entire balance, if you have otherwise provided for heirs. Because of the income tax considerations, this is one of the most tax-wise ways you can make a gift. More information on Retirement Plan Assets.
You might have a paid-up life insurance policy that you no longer need. You can make a gift by transferring the policy outright to AFE or naming AFE as a beneficiary similar to retirement assets. Or you might think about taking out a new policy benefitting AFE and receive tax benefits with each premium paid. More information on Life Insurance gifts.