Making a Bequest to The Children’s Home
Bequests are the most frequent type of planned gift made to charities. Including a charitable bequest to The Children’s Home in your will is an excellent way to leave a legacy of support.
When your last Will and Testament is prepared, you will of course want to provide for your next of kin and loved ones first. After their needs have been addressed, you might want to direct a portion of your estate towards helping others.
Designating The Children’s Home a partial or sole beneficiary in your Will is definitely a gift that assists others. Your gift by bequest can be personal assets of any kind, such as cash, property, securities, or works of art.
We suggest naming The Children’s Home to receive a percentage of your estate rather than a specific amount. This will protect you from giving away too much, in the event funds are needed for your care later in life.
You may elect to make a specific bequest to The Children's Home. This specific bequest can be stated in your Will as:
* A bequest of a fixed dollar amount;
* A bequest of a fixed percentage of your estate;
* A bequest of a specified asset;
* A bequest of the residue of your estate (from what is left after subtracting gifts made to your primary beneficiaries)
You may also provide restrictions or instructions for The Children’s Home may use your bequest (for example, to be used to purchase a van to take children on trips and outings, or, to fund an annual event for the children and their families).
If you do not provide any restrictions or instructions regarding the use of your bequest, The Children’s Home may use your bequest for any of the organization's programs and services.
The Children’s Home will use a bequest in accordance with any restrictions or instructions provided by the donor, unless such use is prohibited by law or otherwise impossible or impracticable.
In making bequests, you may want to consider making a specific bequest of IRAs, 401(k) distributions and other tax-qualified retirement benefits (a "retirement asset"). As a 501(c)(3) organization, The Children’s Home is not subject to income tax upon the receipt of a bequest of retirement assets. In contrast, if these retirement assets are distributed to an individual beneficiary, that beneficiary upon the distribution of the retirement asset owes income tax. Accordingly, if you intend to make a bequest to both The Children’s Home and other individuals, you can minimize the income taxes by specifying that The Children’s Home bequest is to be paid out of the retirement asset.
Whatever your choice, your bequest will be used after your death just as you stipulate in your Will. It does not affect your estate while you are alive. It is a gift that will continue to help give others a better chance at a brighter future.
