There are several different types of gifts you can leave in your Will or Trust. Your attorney can advise you which types may be best for your individual circumstances.
- Residuary gift – a percentage of your estate after debts have been paid and other gifts made. For example 5% of the estate.
- Pecuniary gift – this is a gift of a fixed sum of money. For example a gift of $7,500.
- Specific gift – a particular item such as jewelry, a collection, or a painting.
- Contingent gift – a gift that is dependent upon an event that may or may not happen. For example if you outlive one of your beneficiaries, their gift would instead pass to Crosswalk Teen Center.
- Life-interest gift – a gift that would benefit someone during their lifetime but would then pass to someone else. For example a house could be left to a relative to live in during their lifetime but would then be sold to benefit Crosswalk Teen Center.
- Real Estate - Crosswalk Teen Center will consider gifts of commercial and residential real estate (the condition, environmental issues, marketability, etc. must be evaluated).
- This is a way of giving a significant gift to Crosswalk Teen Center. Gifts of real estate are deductible at the fair market value (the donor is responsible for securing an appraisal to substantiate the donation). Donors may also avoid capital gain taxes on the property.
- There are two different ways to give a gift of real estate:
- Outright Gifts: Contribute property outright to Crosswalk Teen Center.
- Life Estate: You can contribute residential real estate property to Crosswalk Teen Center and retain the right to live there for your lifetime (can be done for one or more lives, or a term of years). This can also be done with farm property so long as it is land used by the donor or tenant for production of agricultural products or raising livestock.
- Appreciated Securities (stock, bonds, mutual funds) - A gift of stock, bonds or mutual fund shares entitles you to a charitable deduction for the full current market value (up to 30% of your adjusted gross income) if you have owned the security for one year or more. Any excess can be carried forward five years. (This needs to happen quickly, because the date of your gift is considered to be the day you electronically transfer stock to Crosswalk Teen Center’s brokerage account – can decline in value over time).
- You can bypass capital gains tax by transferring the stock to Crosswalk Teen Center.
- Stock should be sent to Crosswalk Teen Center, not sold and then forwarded to Crosswalk Teen Center. If sold and forwarded, the proceeds are liable for the capital gains tax.
- IRA or other retirement account - If over the age of 70 ½, you can give up to $100,000 each year through your IRA Charitable Rollover. This is a great way to give away your RMD (required minimum distribution) without getting taxed.
- Life Insurance – a gift of life insurance are efficient and income tax-free vehicles to use for transfer of wealth. You can make a larger donation later but receive tax benefits now.
- A single premium life insurance policy can be given to Crosswalk Teen Center (named as owner and beneficiary) income tax-free.
- Currently held life insurance policies that are no longer needed can also be donated. You would receive a charitable income tax deduction for the initial donation as well as for any premiums paid in the future. Your cash gift to the charity would be the value of the policy purchased (rather than cashing out and receiving just the cash value of the premiums paid).