Jerry was a widower who had a great love for our organization. As an individual who had directly benefited from our work, Jerry wanted to thank us with a gift from his estate.
Jerry told his attorney that he wished to leave a bequest to JCF as part of his estate plan. Jerry's estate included some stocks, real estate, and an IRA. Jerry's attorney recommended that he give the appreciated stock and real estate to his children and leave his IRA to charity.
Jerry: My attorney told me that if I gave the stock and real estate to my children, these assets would receive a step up in basis at my death. This step up in basis allows the property that is transferred to my children to have a cost basis equal to the fair market value of the property at the time of my passing. This means that when my children sell my home or other assets, they will be able to avoid the capital gains taxes that I would have had to pay if I had sold those assets during my lifetime. My attorney explained that these are good assets to give to my children. However, if I gave my children my IRA, the IRA would be subject to estate and income tax. After paying all of these taxes, very little would be left for my family. By giving the IRA to JCF, I could make a nice gift that would be endowed for the future and avoid any additional tax for my estate and children.
Jerry contacted his IRA custodian to obtain a beneficiary designation form. He filled out the form and designated our organization as the 100% recipient of his IRA account. Jerry's attorney then specified in Jerry's will the bequest of his other assets to his children.
Jerry: I was so impressed with my attorney's advice that I named him executor of my will!
Jerry called and notified us of his bequest. He was pleased that because our organization was a tax exempt institution, it would receive the full amount of the IRA value when he passed away, creating a legacy for the future through his named endowed fund and benefiting the charitable cause of his preference.
Is a bequest right for you?
It is easy and convenient to include a bequest in your will or living trust. This
link includes sample bequest language that can very easily be included in your will.
You might find it helpful to print this page and the bequest language to give this information to your attorney. If you or your attorney have any questions, please
contact us.
*Please note: The name and image above are representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to
click here to view an example of your benefits.
