Gift Planning

Wills and Trusts

David and Ann originally established a patient assistance fund that would help support personal needs of patients that, unless met, might challenge their ongoing treatment gains. They had made an outright gift to the hospital of some appreciated stock. It was later, after receiving reports from clinical staff about how important the fund was to the patients, that they changed their will to include a bequest that will magnify the fund tenfold.

Ann: "We felt good about helping through establishing a small fund. But we had no idea what the fund would bring to us."

David: "Over the years, we have heard of situations where patients have been greatly helped by the fund. I can't describe how good it feels to know that we have been able to make a difference in helping people along the road to recovery."

Ann: "I feel like we really have accomplished something good!"

Setting all the emotional rewards aside, this was a wise financial move. First, there were some immediate tax benefits on the initial gift based not on the cost of the stock, but on its appreciated value. Second, their estate will benefit by having a write-off to charity through the bequest (see bequest information).

Using funds from a retirement account to make bequests is often a good strategy. If there is a balance in your retirement account at your death, not only is there a potential income tax burden, but there may be estate taxes as well. Estimates are that taxes could eat up as much as 70-75% of retirement assets under certain circumstances. Careful planning concerning retirement funds needs to be done. Some additional information regarding retirement assets is available.

Another option to consider in making a gift is to use life insurance policies that are no longer needed or necessary. There are some different ways to make a gift of life insurance.

Ann and David found their experience enriched their hearts and lives. Often donors are surprised by just how wonderful the giving experience is.

Now click here to meet Joyce.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Planned Giving section has been developed for the Bethesda Foundation by Future Focus. Please report any problems to webmaster. Revised: February 21, 2005 16:15.