Bequests
The primary motivation for giving to Habitat for Humanity Inland Valley (HFHIV) is to support our mission and purpose to provide an affordable home in a safe community to first-time home buyers. Gifts from our friends enable us to build homes that provide an improved quality of life for the families we serve.
For many of our friends, a bequest is the best way to make a significant gift to HFHIV. Traditionally, bequests are made through wills, however a growing number of individuals make their estate plans using living trusts.
ESTATE TAX IMPLICATIONS
The federal government encourages bequests to charitable organizations. You can make a bequest of an unrestricted amount to HFHIV from your estate free from estate taxes. A bequest to HFHIV can reduce the taxable portion of an estate creating significant estate tax savings. When bequests are made by transferring assets from an IRA or other retirement plan, income taxes can also be avoided.
A WORD ABOUT WILLS
Each year an alarming number of individuals die without a written plan for the distribution of their assets. If you don’t have a will, the state of California has one for you. It has predetermined how your assets will be distributed and how much tax will be due on the assets held in your estate. It does not provide for heirs who have special needs and it does not provide for any of your favorite charities. If you have a will, we strongly recommend that it be reviewed to assure that it is up-to-date and that your assets will be distributed according to your wishes.
YOU SHOULD REVIEW AND UPDATE YOUR WILL WHEN….
· Tax laws change
· You move to another state
· Your executor can no longer serve
· Your marital status changes
· There is a need to change guardians
· Your financial status changes
· Needs of your heirs change
· You inherit property and want to consider its disposition
· Your charitable interests change
TRUSTS
A trust is a legal arrangement that allows assets to pass from one estate to another without going through probate. Through careful planning, trusts can reduce tax obligations and increase wealth passed on to your heirs. Usually the person creating a trust appoints someone to manage assets and distribute income to him or another beneficiary. After a pre-determined time period, the assets held in the trust are then distributed according to the wishes of the person who created the trust. Assets may be distributed to individuals or to charitable organizations such as HFHIV.
Trusts called “Living Trusts” are established during the lifetime of the individual creating the trust. “Testamentary Trusts” are created by will at the time of the passing of an individual. Trusts are flexible vehicles through which you can satisfy your financial, estate, and charitable planning objectives. We suggest that you consult with your attorney and our development staff about many of the gift planning opportunities and advantages available through the use of trusts.
PLANNING FOR THE FUTURE
As you review your personal estate plan, we hope you will give serious consideration toward making a provision in your will or trust that includes HFHIV. Gifts of this type play an important role in our continuing growth. Many of our donors have made bequests that have helped::
· Build new homes
· Remodel and upgrade existing homes
· Refurbished existing homes for veterans
· Funded special programs
Bequests come to us in a variety of sizes and forms. It may be a specified gift amount or a percentage of an estate. It can be the principal left in a trust established to first provide lifetime income for a loved-one, and then to support HFHIV. We would be happy to explore the various options that can provide benefits to you while helping to support the future of HFHIV and the people we are yet to serve.
To learn more about making a bequest to HFHIV, please contact Eric Bunge, Director of Special Gifts, at (951) 296-3362 ext 208, or email Eric@habitativ.org.
The information in this report is believed to be accurate and is provided for general information purposes only. Habitat for Humanity Inland Valley is not engaged in rendering legal or tax advice. The application of any laws discussed herein may vary from state to state. Consultation with independent counsel is recommended for individual applications.
