Estate Planning

Gift planning is a great way to make a lasting contribution to Spaulding for Children while taking advantage of favorable federal and state tax laws.

Your gift can:

• reduce your income taxes.
• reduce or possibly eliminate capital gains taxes.
• remove assets from your estate and possibly reduce your gift and estate taxes.
• provide income for yourself and others.

What Are the Gifting Strategies?

In addition to making an outright donation, there are a number of different gifting techniques you can use.

Name a Beneficiary - Naming Spaulding for Children as a beneficiary is simple and has lasting effects. You can name us as a beneficiary of a retirement plan, insurance policy or financial account. After your lifetime the asset will come to us without going through probate and your estate is entitled to a charitable deduction for the amount of the gift.

Retirement Plan - Your retirement plan is designed to benefit you during your retirement. However, you may name beneficiaries for your plan in case you pass away with funds still in your account. Along with family, relatives and friends, a charity may also be named as the beneficiary.

Retirement fund assets can be great charitable gifts because of the tax implications to your non-charitable beneficiaries. Most retirement plans are income tax-deferred, meaning you do not pay income tax on the funds contributed to your plan or on the growth of the assets within the fund. However, you are responsible for paying the tax when the funds are distributed. Your beneficiary(ies) are also required to pay the income tax that has not been paid.

As a charitable organization, Spaulding for Children is tax-exempt and not liable for the unpaid taxes.

Naming or changing your beneficiary(ies) is easy. Simply contact your plan administrator and request a beneficiary form.

Insurance Policy - A gift of life insurance enables you to give a large future gift at a relatively modest cost.

Financial Account - One way you can include Spaulding for Children in your estate plan is by naming us as the beneficiary of an account, such as a bank or brokerage account, or an asset, such as a certificate of deposit (CD). All you need to do is fill out a beneficiary-designation form (often called a transfer-on-death or pay-on-death form) provided by the institution. After your lifetime, the asset passes directly to Spaulding for Children enabling us to continue our work.

Charitable Remainder Trust - A Charitable Remainder Trust lets you convert a highly appreciated asset (stock, real estate, etc.) into lifetime income without paying capital gains tax when the asset is sold. It reduces your income taxes now and reduces estate taxes when you die. And it lets you help a charity(ies) that has special meaning to you.

Charitable Lead Annuity Trust - Everyone wins with a Charitable Lead Annuity Trust (CLAT). This is a method of lowering estate tax and getting more to your children than they would receive if no trust was made. It also provides a set percentage income to the charity of your choice during your lifetime or fixed term, during life or after death.

With a CLAT, there is a discount on the value of the gift, which lowers the tax due. The value of the income interest to charity is deducted from the value of the property gifted to the trust, leaving the gift or estate tax value, which is less than the amount transferred to the trust. This results in a discounted amount subject to tax, and a lower tax than if the property was gifted outright to your heirs.

Bequests - A bequest to Spaulding for Children enables a donor to make a significant gift that might otherwise not be possible. A bequest may leave Spaulding for Children a specific cash amount or property, or it may reserve for Spaulding for Children all or a certain percentage of the property remaining after provisions for family members and other beneficiaries. The donor may stipulate whether the bequest is for the general support of the agency or for a specific program. A bequest may also be made in honor or memory of another.

How to Name Us in Your Will

Legal Designation Language for Wills and Estate Plans

If you choose to include Spaulding for Children in your will or estate plan, we should be named as:

Spaulding for Children, a nonprofit corporation, organized and existing under the laws of the State of Texas, and with principal business address of 8552 Katy Freeway, Suite 300, Houston, TX 77024.

Our tax identification number is 74-2116380.

What Are the Benefits?

Making a planned gift can provide some significant benefits.

• A charitable contribution may qualify you to receive a significant current income tax deduction.
  
  
• Your deduction for an outright gift will equal the value of your gift up to certain generous limits. You can carry forward any gift amount that exceeds these limits for up to five years.
  
  
• With a charitable lead trust, you can pass an appreciated asset onto your heirs with little or no estate taxes.
  
  
• By using a charitable remainder trust, the Trustee can sell highly appreciated gifted investments and reinvest the proceeds to generate income without paying capital gains tax. Thus, a properly planned gift could enable you to realign your investment portfolio without incurring any current income taxes. That could allow you to diversify your holdings and even increase your cash flow.
  
  
• The only thing you can't do is take back an irrevocable gift. You can't start selling assets and then pocket the money. But you can change the charity that will eventually receive your gift.
  
  Whatever gifting strategy you choose, planned giving can be very rewarding. It's wonderful to see your gift at work and to receive tax benefits as well.

  For more information about Spaulding for Children's planned giving options please call the Development office at 713.681.6991 or email us at Development@SpauldingforChildren.org.

  Information provided on our Internet site is not intended to be tax or legal advice. Please consult a qualified financial advisor before making a gift.