Do you realize that you can make a lasting impact at the Workmen’s Circle through a variety of estate plan gifts?
Often referred to as “planned gifts,” these opportunities allow you to create a lasting legacy representing your lifelong values and aspirations while planning for your own future as well as that of your loved ones.
How is this possible? By reviewing the various gift planning options with us and your financial advisor, we can find the estate plan gift that meets your immediate and future financial needs. We can also create an opportunity for you to influence the lives of – generations to come.
Whether you want to make a gift that that is revocable during your lifetime, or an irrevocable gift that gives you guaranteed income for life, this page is designed to introduce you to the various choices and potential tax benefits of each option.
Types of Gifts
> Name the Workmen’s Circle in your will or living trust
> Make a tax-free distribution from your IRA to the Workmen’s Circle
> Designate the Workmen’s Circle as a beneficiary of your IRA or Pension Plan
> Establish a planned gift that provides lifetime income to you and/or your spouse
> Gift ownership of a Life Insurance Policy
> Create a Permanent Endowment Fund
For more information about planned giving with the Workmen’s Circle, please contact Melissa Karachalios, Director of Development and External Affairs, at firstname.lastname@example.org or 212-889-6800 ext. 811.
Types of Planned Gifts
Name the Workmen’s Circle in your will or living trust – Including the Workmen’s Circle in your will or living trust is the most common form of planned gift. To do this, you will need your attorney to draft a codicil (for a will) or amendment (for a living trust) or to write a new will or living trust. Wills and living trusts are revocable documents; nevertheless, the Workmen’s Circle recognizes and honors anyone who informs us of their intentions. We strongly encourage you to inform us of your gift so that your commitment can be recognized and help encourage others.
> All bequests to the Workmen’s Circle are excluded from federal and state estate taxes.
Make a tax-free distribution from your IRA to the Workmen’s Circle
If you are 70½ years old or older, you can take advantage of the IRA charitable rollover and provide a gift up to $100,000 from your IRA directly to the Workmen’s Circle without having to pay income taxes. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
Designate the Workmen’s Circle as a beneficiary of your IRA or Pension Plan – By naming the Workmen’s Circle as a beneficiary of your IRA, pension plan or other retirement assets, you are creating a revocable commitment to the Workmen’s Circle. This is a tax-wise form of giving, as funds designated in this manner are not subject to income tax after your passing. While estate taxes may or may not be a concern for you, IRA, pension plan and pre-tax retirement assets may be subject to income tax when distributed. That is, unless a non-profit institution like the Workmen’s Circle is named beneficiary of some or all of the funds. Changing a beneficiary designation requires obtaining the correct form from your plan administrator and filing the new beneficiary designation form properly. As with bequests, notifying the Workmen’s Circle of your intentions gives us the opportunity to thank you for your foresight and generosity while encouraging others to give.
> All IRA, Pension Plan and retirement assets designated to the Workmen’s Circle are not subject to probate proceedings and are excluded from federal and state estate taxes.
>All IRA, Pension Plan and retirement assets designated to the Workmen’s Circle are also not subject to income tax after your passing unlike assets designated to non-charitable beneficiaries.
Establish a planned gift that provides lifetime income to you and/or your spouse – There are various forms of planned gifts that allow Workmen’s Circle supporters to transfer cash or appreciated securities in exchange for a guaranteed fixed or adjustable income stream. Such gifts may be for one or two lives or a term of years. One income beneficiary must be at least 60 years of age. Two forms of planned gifts that provide lifetime income are:
Charitable Remainder Trusts – Minimum gift of $100,000. There are various forms of charitable remainder trusts that can be established to benefit the Workmen’s Circle. Trusts may provide: 1) a fixed annuity income for one or two lives or a term of years, or 2) a variable income stream based on a fixed percentage of the trust’s assets valued as of January 1 each year. Payment rates for charitable remainder trusts depend upon your goals and IRS limitations.
Charitable Gift Annuities – Minimum gift of $20,000. A charitable gift annuity is a simple contract which guarantees fixed annuity payments to you and/or a designated income beneficiary for life. The payments amount are based on your age(s) and rates range between 5% and 9%. The Workmen’s Circle works with the National Gift Annuity Foundation to ensure that your gift is secure, and will be able to provide guaranteed income for life and a significant remainder gift to the Workmen’s Circle.
> Both charitable gift annuities and charitable remainder trusts entitle you to a charitable income tax deduction for a portion of your gift, avoidance of capital gains when funding the gift with appreciated securities, and removal of assets from your taxable estate.
> To receive an illustration of the specific benefits you may receive from establishing a life income gift, please contact the Workmen’s Circle
Gift ownership of a Life Insurance Policy – Insurance policies which are already “paid up,” meaning that there are no more premiums due, are ideal assets to gift to Workmen’s Circle if your family no longer needs the insurance. Alternatively, a new insurance policy can be purchased naming the Workmen’s Circle as the owner if the donor pledges to make annual gifts to cover the premium payments. We will work with you and your financial advisor to determine the best policy to use for this purpose.
> A transfer of ownership of an existing insurance policy entitles the donor to a charitable deduction for the fair market value of the policy at the time of the transfer.
> For newly established insurance policies owned by the Workmen’s Circle where the donor agrees to make annual gifts to cover the policy premiums, the donor will be entitled to a charitable income tax deduction for all funds donated for this purpose.
Create a Permanent Endowment Fund – The Workmen’s Circle maintains numerous permanent endowment funds. These are funds established by donors during life or through their estates whereby only the income is used for a specified purpose. Typically, endowment funds are established for named scholarships or a specific program. Depending upon your interests, we would be happy to work with you and/or your professional advisor to determine the best language for a fund to ensure that your intentions can be properly fulfilled.
For more information or to discuss establishing a permanent endowment fund at the Workmen’s Circle, please contact Melissa Karachalios, Director of Development and External Affairs, at email@example.com or 212-889-6800 ext. 811.