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American Red Cross
There are some donors who would like to accomplish specific financial goals while making a gift. Your attorney, tax advisor, or estate planner know a number of ways through which you may make a significant contribution while still receiving lifetime income from the gift, or defer income until after retirement, or contribute interest from an asset while retaining ownership. There are many ways to decrease and/or defer income taxes, capital gains taxes, state taxes and probate costs. For an extended explanation of many of the planned giving options, click here, and then talk to your attorney. Here are just a few of the many options that are available: 1. Bequests2. Gift of Life Insurance 3. Gifts of Retirement Plans 1. Bequests: How to include the American Red Cross in my will... Many of our supporters make charitable gifts by naming the Red Cross as a beneficiary in their wills. The federal government encourages these gifts or bequests, by allowing an unlimited estate tax charitable deduction. To make a bequest to the Red Cross, the following language will be helpful to your lawyer: "I give, devise and bequeath to the Centre Communities Chapter of the American Red Cross the sum of $________ (or otherwise describe the gift) to be used in furthering the services of the Chapter." There are three ways you can make a bequest: 2. Gift of Life Insurance: Some of our supporters no longer need their life insurance that was purchased years ago to provide for children or other family members. If that is your situation, please consider donating the policy to the American Red Cross. You may claim a charitable deduction for approximately the policy's cash surrender value, and the proceeds are completely removed from your estate.3. Gifts of Retirement Plans: Many individuals today have large qualified retirement plans such as an IRA, 401(k), or Keogh plan. These assets have been growing tax-free for years. Once the owner begins to receive payments from the qualified plans, the distributions are taxed. The plans are also included in the owner's taxable estate. A retirement plan may be an excellent source of funds for making a gift to the American Red Cross.One way to make a gift of your retirement plan is to create a charitable remainder trust through your will. It works like this: Your IRA assets will be transferred to a charitable remainder trust. There is no tax due because the charitable remainder trust is a tax-exempt entity. The trust will provide life income to the beneficiary (for example, your child) with an eventual gift to the Red Cross. The beneficiary will pay income tax on the distributions from the trust. Your estate will receive an estate tax charitable deduction for the value of the Red Cross's right to eventually receive the trust assets. Contact the Community Resources Department of our Chapter at 814/237-3162 for more information about these and other ways to financially support the Red Cross in your community.
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