Bequests

Bequests are gifts made through a Will. It may be the most appropriate way for most individuals to support their favorite charities, many of which receive significant gifts in the form of bequests. Bequests also allow donors the use of their assets while they are living. This allows a person with any size estate to make a gift to one or several charities in this manner. When Friends of Seven is designated in a Will to receive a bequest, they will use that special gift to ensure the continuation of outstanding programming at KSPS Public Television. This type of gift will continue beyond a donor's lifetime - it is a legacy for and testimonial to your family, friends and community - that quality in television programming does matter.

When a bequest is made to Friends of Seven, it may be made leaving specific property or a specific amount. A percentage of an estate or residue of the estate after satisfying all other terms of the Will can be designated, as well.

The following language with the legally correct name as recognized by the IRS and the Secretary of State in Washington is provided for naming Friends of Seven in a Will:

 

For a fixed amount:

I/We give $ ______ to Friends of Seven, a Washington non-profit corporation operating for the support of KSPS Public Television, 3911 S. Regal, Spokane, WA, 99223.

 

For a percentage:

I/We give_______ % of my estate to Friends of Seven, a Washington non-profit corporation operating for the support of KSPS Public Television, 3911 S. Regal, Spokane, WA, 99223.

 

For real estate or personal property:

I/We give____________ (insert address or brief description of the property being donated) to Friends of Seven, a Washington non-profit corporation operating for the support of KSPS Public Television, 3911 S. Regal, Spokane, WA, 99223.

 

Charitable Remainder Trusts

Charitable Remainder Trusts are gifts to charity coupled with tax savings and income potential. They are separate legal entities that may provide capital gains tax savings, income tax and estate tax savings while providing for income to the donor or named income beneficiary. There are two basic types of Charitable Remainder Trusts (CRT) - the Charitable Remainder Unitrust (CRUT) and the Charitable Remainder Annuity Trust (CRAT).

The most significant difference between the two is that once the payout rate is established, the Unitrust's payments are based on the fair market value of the trust as it is revalued each year allowing for long-term growth and increased income. The Unitrust is a flexible planning tool that can be structured in different ways to meet personal objectives.

The Charitable Annuity Trust's payments remain constant as the payout rate is established based on the asset value when the trust is funded. This payout amount is constant - year to year. Charitable Remainder Trusts are excellent ways to supplement retirement income while ultimately benefiting those organizations that provide services you value.

Charitable Lead Trusts are advantageous to people who don't need income from current assets and want to benefit a charity like Friends of Seven. This type of trust also provides the means to transfer assets to heirs at a reduced or eliminated gift tax cost, making it a desirable vehicle for someone that anticipates high estate and gift taxes.The trust pays taxes on the income and capital gains, although it may deduct any amount paid to a charity.

The Charitable Lead Trust (CLT) trust can have terms for a fixed number of years, one or more persons' lifetime, or a combination of the two. The asset (income producing or invested) would pay a fixed percentage of the trusts value (the lead) to Friends of Seven on an annual basis. When the trust's term ends, the trust "assets" would be distributed to the designated heirs. Also worthy of note is that appreciation that occurs within the trust during its term would be distributed to heirs free from gift or estate tax liability.

 

Retained Life Estate

Retained Life Estate enables a donor to make a gift of a personal residence, vacation home or farm to Friends of Seven and retain the right to live in it for life or for a term of years. The lifetime of a second resident may be named, as well. Responsibility for obligations pertaining to the property such as maintenance, insurance and taxes remains with the donor or life tenant. The immediate benefit of this type of gift is an often substantial tax deduction for the charitable gift. This deduction is equal to the remainder interest in the property; that is, the appraised fair market value of the real estate less the calculated value of the retained life use. This arrangement is ideal for an older property owner. It allows the donor to make a gift of a significant asset without relinquishing its use - and realize the tax deduction at the time of transfer.