Charitable estate planning is a wonderful way to leave your legacy. The most common way to give is through a bequest in your will, however you can also designate a charitable organization as the beneficiary of a life insurance policy or retirement account. The third way to make a planned gift to Austin Child Guidance Center is through a Gift Annuity, which gives you some benefits now and helps the Center after you are gone.
If you don’t have a will, it is time to write one. Without one, a probate court will choose guardians for your minor children and make decisions about the distribution of your assets. No assets will be given to a charitable organization, no matter how important that organization was to you during your lifetime.
Below are three examples of language you can take to your attorney if you are interested in making a planned gift through a bequest to Austin Child Guidance Center.
- Bequest of Cash: “I bequeath the sum of $10,000 to Austin Child Guidance Center in Austin, Texas.”
- Bequest of a percent of the estate: “I devise and bequeath 20% of the remainder and residue of property owed at my death, whether real or personal, and wherever located to Austin Child Guidance Center, Austin, Texas.”
- Contingent Bequest: “If my brother John Doe survives me, I devise and bequeath 20% of the remainder and residue of property owed at my death, whether real or personal, and wherever located to John Doe. If John Doe does not survive me, then I devise and bequeath 20% of my residuary estate, whether real or personal property and wherever located to Austin Child Guidance Center, Austin, Texas.”
Life Insurance Policy
You can name Austin Child Guidance Center as the primary, secondary, or final beneficiary of your life insurance policy. This type of designation can be changed; for this reason no charitable deduction is allowed, yet it will not be included in your estate, avoiding estate tax.
Your IRA, pension plan, or other retirement account has been building tax-free over the years. That account will be included as part of the taxable estate at your death. Your heirs will also be subject to federal income tax when they receive the remainder of your account. You may find it worthwhile to make a charitable gift with your retirement account either by a change in beneficiary designation or by directing in your will that the account be used to make charitable gifts. Through proper planning, this option could avoid any income and estate tax. Please consult your attorney.
Charitable Gift Annuity
This is an easy way that you can make a gift that will benefit you and the future needs of the children served at Austin Child Guidance Center. A charitable gift annuity is simple to establish ($2,000 minimum), gives you an income stream for the remainder of your life, and allows an immediate income tax savings through a charitable tax deduction.
For more information or questions about planned giving, please contact us at 512-451-2242.