Planned Giving

Bequests

These are gifts made by will and can take various forms: an amount of money, certain securities or other property, or a specified percentage of the donor’s estate. The donor retains full use of the assets during the donor’s lifetime. After providing for family and friends, the donor can support Ronald McDonald House Charities of Spokane.

Outright bequests are exempt from estate taxes. Similar provisions can be made through a living trust.  The donor can direct where the gift is to be used through the will, or the living trust of the gift can be unrestricted.

Remainder Interest in a Gift or Personal Residence

The donor can give a personal residence to Ronald McDonald House Charities and retain the right to live in the residence for the rest of the donor’s life. When the residence is vacated, it is available for use by the RMHC or can be sold to generate funds for house needs as the donor directed.  The donor is entitled to a current income tax charitable deduction for the present value of the remainder interest when the gift is made. Again, the amount of the deduction depends on several factors.

Estate taxes may be reduced as the home is not included in the estate.  The same gift technique may be used with a gift of farm property.

Charitable Remainder Trusts

A charitable remainder trust is a gift arrangement whereby the donor will receive income for life. The donor establishes a trust with cash, long-term appreciated securities, or perhaps real property and has the right to receive an annual income for the donor’s life and/or the life of another person. Upon the last survivor’s death, the assets of the trust are transferred to Ronald McDonald House Charities for use. The donor is entitled to an income for life based on a chosen payout fee, and a current income tax deduction based on the present value of the future interest in the trust. Also, the capital gains taxes are avoided on the transfer of the long-term appreciated property.  Estate taxes may be reduced as the assets are no longer included in the donor’s estate.


Gifts of Life Insurance

The donor may assign a fully paid, whole life policy to Ronald McDonald House Charities of Spokane. The donor is entitled to an income tax charitable deduction for approximately the cash surrender value of the policy or its cost, whichever is less.  Alternately, the donor may retain ownership of the policy, but may name RMHC as the beneficiary. Although an immediate income tax charitable deduction will not be available, estate taxes may be reduced because of a charitable tax deduction.

A donor may also purchase a gift of life insurance naming the RMHC as the owner and beneficiary. This strategy may increase the amount of the gift the donor can make. An income tax deduction is available for the amount of the premium if the premium is paid to RMHC with RMHC then making the premium payment due.

Charitable Gift Annuities
A gift annuity is a contract between Ronald McDonald House Charities and the donor where the donor contributes cash, securities, or other assets to RMHC. RMHC then agrees to pay an income to the donor for life and the life of a spouse or one other person. When the gift is made, the donor is entitled to a current income tax deduction on the portion of the transfer that is the gift element of the annuity. If funded by a gift of appreciated property, any capital gains tax that may be due on the transfer of the property is deferred. The donor may also choose to enter into a deferred gift annuity, deferring the life income payment for a number of years. A deferred gift annuity will increase the current income tax deduction and life income payment.

Questions?

Contact us at (509) 624-0500. We would love to hear from you!

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