A
Brief Guide to Planned Giving
In
all honesty, not many of us like to think ahead about our final
days and our final words. In fact, half of us pass on without a
written estate plan. Yet we all have an opportunity to leave a lasting
legacy that speaks of what we are about and what we hope for those
we leave behind.
Planned
giving provides the tools for each of us to make a meaningful final
statement about what we love and cherish and hold dear. Whether
honoring a loved one or a favorite charity, our planned gifts provide
support that continues long after the reading of a last will and
testament.
Listed
below are some of the most common bequest and trust arrangements.
This information is general in nature; we strongly recommend that
you consult your attorney and your tax or financial advisors to
draw up an estate plan that is specific to your interests and needs.
WILLS
AND BEQUESTS
A will
enables you to:
- direct
the distribution of your assets
- provide
for your heirs in the way you choose rather than as state and
federal laws direct
- possibly
reduce or eliminate certain estate taxes and court costs, and
- designate
a portion of your assets as a gift to your favorite charity.
Testamentary
gifts to Friends of the Smokies or other charities can take many
forms, either through a new will, or through a 'codicil,' an amendment
to your existing will. There are several different types of charitable
bequests that you may select:
Cash
Bequest
Friends
of the Smokies receives a specified dollar amount.
Specific
Bequest or Devise of Property
Friends
of the Smokies receives specified assets, such as securities, an
interest in real estate (such as a residence), or tangible personal
property (such as art work, jewelry, or rare books).
Residuary
Bequest or Devise
Friends
of the Smokies receives all or a percentage of the remainder of
your estate after specific legacies, debts, taxes, and estate expenses
have been paid.
Contingent
Bequest or Devise
Friends
of the Smokies receives a gift only if certain conditions are met.
There are a wide variety of conditions that you could place on such
a bequest. For example, if you outlive other named beneficiaries,
then part or all of your estate would benefit Friends of the Smokies.
EXAMPLES OF TESTAMENTARY LANGUAGE
The
following are examples of language that can be included in your
will or trust and tailored to address your specific interests:
Unrestricted
Bequest
I give
and bequeath to Friends of Great Smoky Mountains National Park,
a non-profit organization (Tax ID # 62-1564782), with a principal
business address of 3099 Winfield Dunn Parkway, Suite 2, Kodak, TN 37764, for its
general purposes, the sum of ____ Dollars ($____) - OR - __% of
my residuary estate.
An
unrestricted bequest allows your support to be used in the area
of greatest need.
Restricted
Bequest
I give
and bequeath to Friends of Great Smoky Mountains National Park,
a non-profit organization (Tax ID # 62-1564782), with a principal
business address of 3099 Winfield Dunn Parkway, Suite 2, Kodak, TN 37764, the sum
of ____ dollars ($___) - OR - __% of my residuary estate to support
______________ (e.g, education, conservation, recreation, historic
preservation).
If
you have a more specific purpose in mind, please contact us so we
can work with you to ensure that your wishes are met.
Bequest
of Specific Assets
I give
and bequeath to Friends of Great Smoky Mountains National Park,
a non-profit organization (Tax ID # 62-1564782), with a principal
business address of 3099 Winfield Dunn Parkway, Suite 2, Kodak, TN 37764, for its
general purposes, ____________________ (e.g., a vacation home, acreage,
a painting, stocks, jewelry). (Include specific details, such as
the address of a vacation home or the title and artist of any piece
of art.)
TAX BENEFITS
Your
bequest to Friends of the Smokies may qualify your estate for a
charitable deduction equal to the entire amount of the bequest.
Please consult your tax or financial adviser for further information.
CHARITABLE REMAINDER TRUSTS AND CHARITABLE LEAD TRUSTS
As
an alternative to an outright bequest, you may wish to consider
establishing either a charitable remainder trust or a charitable
lead trust during your lifetime or through your estate plan.
Charitable
Remainder Trust
One
or more named beneficiaries receive income for life or for a specified
term of years, after which time the assets pass to Friends of the
Smokies. Through this arrangement, you can provide income to family
members or friends, realize significant tax savings, and ensure
important benefits to Friends of the Smokies after the trust's termination.
Charitable
Lead Trust
Income
from the trust is paid to Friends of the Smokies for a period of
years, after which time the assets pass to your heirs, usually your
grandchildren, at a reduced estate tax cost. By substantially reducing
estate and other transfer taxes, this arrangement allows you to
preserve a larger portion of your estate for your beneficiaries.
RETIREMENT PLANS
IRAs,
401(k)s, 403(b)s, Keoghs, and other retirement plan assets make
up an increasingly large part of many estates. When left to your
heirs, these assets can be subject to income, estate, and other
transfer taxes. Naming Friends of the Smokies as a beneficiary or
contingent beneficiary of all or a percentage of your plan assets
may reduce or eliminate both income and estate taxes. Note that
designating a specific dollar amount, rather than a specified percentage,
may result in the inclusion of these funds in your gross estate
for tax purposes.
To
designate Friends of the Smokies as the beneficiary of some or all
of your retirement plan funds, please use the following language
on the retirement plan forms:
To
Friends of Great Smoky Mountains National Park, a non-profit organization
(Tax ID # 62-1564782), with a principal business address of 3099 Winfield Dunn Parkway, Suite 2, Kodak, TN 37764, for its general purposes - OR
- to support _________________ (e.g., conservation, recreation,
education, historic preservation).
Retirement
plan assets can also be placed in a testamentary charitable remainder
trust to provide income to your heirs for life or a specified term
of years with the remainder interest passing to Friends of the Smokies.
LIFE INSURANCE
Life
insurance is another asset that many people utilize to support a
favorite charity, especially when a policy no longer serves its
original purpose. Such gifts often provide certain tax benefits
as well. To designate Friends of the Smokies as the primary or contingent
beneficiary of some or all of your life insurance policy, you can
use the same language that is suggested for use in designating retirement
plan assets (see above).
MEMORIAL GIFTS
Many
individuals request that survivors send charitable gifts in lieu
of flowers. We request that you ask people to send such memorial
gifts to "Friends of the Smokies," P.O. Box 1660, Kodak, TN 37764-7660. Please ask them to indicate who is being honored,
as well as who should be notified of the memorial gift (e.g., surviving
spouse, parent, or child).
SMOKY MOUNTAINS SOCIETY
If you have included Friends of the Smokies in your will or estate
plan, we hope you will share this general information with us.
We do not need to know the particular details of your planned gift.
Instead, we simply want the opportunity to say thank you.
Friends of
the Smokies has established the Smoky Mountains Society to honor
those people who have planned a lasting gift to help preserve
and protect our Great Smoky Mountains. Members of the Smoky Mountains
Society are invited to special events in the park each year. These
gatherings provide you with behind-the-scenes glimpses of the park’s
most important projects and programs, while also giving us a chance
to express our appreciation and thanks.
FOR MORE INFORMATION
To
find out more about planned giving options, we strongly recommend
that you consult your attorney and your tax or financial advisors.
You can also contact Jim Hart, President, Friends
of the Smokies, (800) 845-5665, or ask your attorney or financial
advisor to contact us. Each inquiry is handled confidentially and
places you under no obligation.
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