Appreciated Property
If you own non-cash property, such as stocks or mutual funds, that have increased in value (appreciated) and have been held long-term (more than one-year), you can generally enjoy greater tax savings from giving such property than from giving an equivalent amount of cash. That’s because a gift of appreciated property lets you bypass capital gains tax that could be due if you sold the asset. You can also claim a charitable deduction based on the property’s current value, including the “paper profits” you have earned since you have owned it.
Depreciated Property
If you own stock or other property that has decreased in value (depreciated), you can save more in taxes by selling them and donating the proceeds. You can then claim a capital loss on your tax return and you can also deduct the cash proceeds you give as a charitable gift. This allows you to enjoy tax deductions that amount to more than the current value of the asset.
Living Will or Trust
In addition to filling an important role in providing for your family and others, your will or living trust can be a way to make a wonderful gift to the Burn Institute. It can be gratifying to know that a portion of your property will be put to good use after you no longer need it. A gift made by will or living trust can be simple to arrange. A provision or amendment by your attorney at the time you make or update your will or trust is all that is needed. Gifts through wills and living trusts are popular because they are easy to arrange and may be changed at any time. Ways to give through wills and trusts include:
There is currently no limit on amounts deductible from federal gift and estate taxes for charitable gifts made by will or trust, so no tax will be due on assets given in this way. To plan a bequest to the Burn Institute, inform your attorney and ask for advice regarding the best form for your gift.
Life Insurance and Retirement Plans
Many people have life insurance or retirement plans with significant balances. In some cases, these assets total more than is needed for a comfortable retirement, and could give rise to heavy estate taxes. In that case, it may be wise to consider using these funs to make charitable gifts that ultimately benefit the Burn Institute. A simple change of beneficiary form may be all that is required.
To make a planned gift to the Burn Institute, contact Diane Sutherland at (858) 541-2277 x19, dsutherland@burninstitute.org or write to the Burn Institute at 8825 Aero Drive #200, San Diego, CA 92123.
© Burn Institute. Legal Notices.