A Different Way of Looking at Things

In our most recent issue, we talked about “What in the world is planned giving?” In this issue, we are going to examine some of planned giving’s more practical applications.

Many of our friends have planned to or have included a bequest in their will to support the work of the Rehab. Quite often a couple will make that decision, keep that information only to themselves and their attorney, and upon the second death, the executor of the estate will contact the Rehab and inform us of their generosity. The news is often a mixture of sadness (the passing of loyal friends) and joy (the realization of their generosity). The Rehab has often been unable to express its appreciation, and the deceased may have missed out on some wonderful benefits that planned giving offers.

As an example, assume the couple above had included a bequest of $50,000 when they revised their wills at the age of 75. Had they, instead, completed a charitable gift annuity in the same amount at the time they wrote their will, instead of leaving the money in a CD, they could probably expect to have received all of it back during their lifetimes as income (much of it tax-free) and at a much higher rate than the CD would have paid. In addition, they would have received a very nice tax deduction when they created the gift annuity, and they would have been able to experience the joy of making the gift while they were alive. Likewise, the Rehab would have been able to express its appreciation in a much more personal and meaningful way.

Or, as many of our donors do, suppose a person had included the Rehab and some other charities in their will. Among their assets was some money in an IRA. Because those types of accounts contain hidden taxes once heirs receive them, a much wiser way to make their gift is to include some simple language in their will which directs the executor to complete charitable bequests first with IRA type accounts. The result is that the Rehab and other charities receive the same amount, but the heirs receive more because the hidden taxes they might have had to pay are not due by charities.

These are but two simple examples of how the planning professionals at the Rehab’s Foundation can help our friends discover very practical benefits of planned giving. Use our toll-free number, 888-861-6385, and ask us to lend a hand. As always, our assistance is without cost or obligation.