planning your
A Guide To Providing For Your Family and Supporting The Causes You Care About.
Letter from the CEO Introduction Four Steps to a Good Estate Plan / Estate Planning Documents Your Benefits with Other Planning Documents Charitable Bequest Gifts of Insurance Gifts of Retirement Assets IRA Charitable Rollover Gifts of Stocks and Bonds Gifts of Real Estate Gifts of Cash Estate Planning Information Beneficiary Designated Gifts Sample Bequest Language Confidential Planned Giving Notification Form / Contact Information
PLANNING YOUR LEGACY 2 PLANNING YOUR LEGACY
We are pleased to provide you with a copy of our estate planning guide. This guide will assist you as you begin the process of planning for your future. It can be a valuable tool that will help you gather information. It will also help you think about how to use your estate plan to provide for your loved ones and support the causes you care about. Leaving a gift to the Humane Society of Tampa Bay will help build a sustainable future for the animals. Your planned gift can meet your personal, financial and estate planning goals while leaving a lasting legacy that will continue to impact the life saving work that is done for animals in need. Once you have completed this guide, you will be prepared for an informed and meaningful conversation with your attorney regarding your desires for the future. When you have completed this guide, your attorney can use the information to draft an estate plan that will fulfill your wishes and create a lasting legacy. If you do not already have an estate planning attorney, we may be able to recommend one to you. It is our pleasure to assist you in this journey as you move forward in creating a plan for your future and securing an impactful legacy. If at any time you have questions or need someone to point you in the right direction, please feel free to contact us. You can also visit our website for more information at hstblegacy.org. We wish you the best in your planning! Cordially yours,
Sherry silk Chief Executive Officer Humane society of Tampa Bay H U M A N E S O CIE T Y T AMPA.ORG
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INTRODUCTION What is planned giving? Through proper planning, the legacy of love and care that you leave for your family and friends can be encouraging and even inspiring. Through planned giving, you can strategically plan your charitable giving to maximize the personal, financial and tax benefits of your gifts. By using this guide to gather information for your attorney, your estate planning process will be much easier, less expensive and a comfort to your loved ones, while fulfilling your desires for friends and family.
What are the benefits of an estate plan?
Peace
Protection
Provision
An estate plan should give you
An estate plan provides for your
A well-designed estate plan
and your family peace of mind,
future medical decisions and
makes
knowing that important and
protects your family. A good
you and your family. You can
sometimes difficult decisions
plan may increase your lifetime
transfer property to the right
have been made to care for you
security and also achieve your
people, at the right time and at
and your loves ones.
goals for family and charity.
minimal cost.
4 PLANNING YOUR LEGACY
provision
for
both
FOUR STEPS TO A GOOD ESTATE PLAN WRITE DOWN WHAT IS IMPORTANT. The first step in the estate planning process is to gather information about yourself, your loved ones and the property that you own. You can use this planning guide to collect that information so that you leave the right assets to the right people at minimal cost.
SPEAK WITH AN ATTORNEY. Talk to a knowledgeable estate planning attorney who can prepare the necessary legal documents, such as a will, trust or medical directive.
UNDERSTAND YOUR PLAN. A good plan will promptly transfer your property to beneficiaries you select. Property can be transferred by a will or trust, a deed or beneficiary designation. You should review your plan with your attorney so that you understand it and are confident it reflects your priorities.
SIGN YOUR DOCUMENTS. Your plan is not effective until you sign your estate documents. Some states require that you sign your documents in the presence of one or more witnesses or a notary. Your attorney understands these requirements and can help you with this part of the process.
ESTATE PLANNING DOCUMENTS Let’s start by reviewing the three basic estate planning documents—a will, a durable power of attorney for healthcare and a durable power of attorney for finances.
LAST WILL AND TESTAMENT Your will is a written document, signed by you and typically by two witnesses. In some states, your signature is witnessed by a notary. If your will is accepted by the probate court, it will be used to determine the distribution of your property. Without a will, the court often ignores your desires and follows state law to distribute your assets and appoint guardians for minor children. With a will, you are able to choose who will inherit your property and who will administer your estate as an executor or personal representative. If you have minor children, you can choose a guardian for them. You also may include a trust and name a trustee. A will is an essential part of transferring your property at the right time to the right people at the lowest cost. Without a will, your family may encounter increased costs, delays and unnecessary conflicts. You can provide a great legacy for family with a sound estate plan.
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Estate Planning Documents continued
HEALTHCARE DIRECTIVES There are two types of healthcare directives—a durable power of attorney for healthcare and a living will. In some states, they are combined into one document called an advance directive. A durable power of attorney for healthcare allows you to select a person who can help make healthcare decisions if you are incapacitated. You may have a serious medical condition and the doctor will need healthcare advice. Your designated holder of a durable power of attorney for healthcare can help you receive high-quality care. A living will is a second document (in many states) that helps medical personnel understand your wishes for end-of-life care. In your last days and weeks of life, there are a number of decisions regarding care, nutrition, hydration, and resuscitation that need to be made. A living will permits you to recommend your preferred end-of-life care options.
DURABLE POWER OF ATTORNEY FOR FINANCES When you sign your will, you usually are able to manage your finances and personal affairs. However, that may not always be the case. There may come a time when you are in poor health and not able to manage your finances. During these times, you will want a plan to ensure your property is being cared for and your bills are being paid. A durable power of attorney for finances is a solution to protect your property and yourself. A durable power of attorney allows you to appoint someone to make financial decisions if you are disabled or incapacitated. If you do not have a durable power of attorney for finances, the court may decide to appoint a conservator. A court-appointed conservator may not understand you and your goals and may not share your values. The court may require the conservator to submit expense reports and audits, which would be paid for out of your assets. A durable power of attorney for finances permits you to select the person who will act on your behalf. It enables you to select someone you trust and who shares your values.
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YOUR BENEFITS WITH OTHER PLANNING DOCUMENTS LIVING TRUST
CHARITABLE REMAINDER TRUSTS
Your will is a written document, signed by you and
A charitable remainder trust (CRT) is an excellent
typically by two witnesses. In some states, your
way to benefit yourself, your spouse or other family
signature is witnessed by a notary. If your will is
members and provide financial support to your
accepted by the probate court, it will be used to
favorite charitable causes. A testamentary CRT
determine the distribution of your property. Without
through your will or living trust can provide income
a will, the court often ignores your desires and
for your family. After all of the payments are made
follows state law to distribute your assets and appoint
to family, the remaining trust assets will be given to
guardians for minor children.
charity. You may also consider funding a lifetime CRT. You will receive a charitable income tax deduction and
CUSTOM ESTATE PLAN FOR FAMILY
trust income payouts.
BUSINESS, INVESTMENTS OR A CHILD WITH SPECIAL NEEDS
CHARITABLE GIFT ANNUITIES
You may need a custom plan if you own a family
A charitable gift annuity is a contract involving you and
business, have substantial real estate holdings or
a charity. You make a gift to the charity in exchange
your child has special needs. A special needs trust will
for fixed payments for the life of one or two persons.
facilitate care of your child by providing resources and
After all payments are completed, the charity receives
directions.
a gift. A gift annuity funded during life provides you with a charitable income tax deduction and partially
IRA, 401(K) OR OTHER RETIREMENT PLAN
tax-free income.
Your IRA, 401(k), 403(b) or other retirement plan can be transferred to a person or charity after you
DONOR ADVISED FUNDS
pass away. It is transferred through a beneficiary
Many families find that a donor advised fund (DAF)
designation form provided by your plan custodian.
is a simple and efficient way to support the causes
You may select a primary beneficiary as well as
they care about. With a DAF, you can time your
contingent beneficiaries.
gifts to favorite charities. You receive an income tax deduction and may decide later on your transfers
LIFE INSURANCE
to favorite charities. Many parents find that a DAF
Life insurance involves a written document called
is a useful tool that can encourage philanthropy by
a policy, which is a contract. The policy will provide
allowing their children to recommend future gifts to
a payout to the policy beneficiaries after the
charity from the DAF.
person whose life is insured passes away. Primary or contingent beneficiaries are named on your beneficiary designation form.
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Benefits with Other Planning Documents continued
CHARITABLE ENDOWMENTS You can use your will or trust to create an endowed fund after you pass away. Your gift is invested by the charity and the annual income is used to support your interest. Because the principal amount of the gift is not being spent, an endowed gift has the ability to benefit the charity for many years and it enables you to leave a lasting legacy.
TAX BENEFITS Charitable giving can provide you with great personal satisfaction. But let’s face it, the tax benefits are valuable, too. Your gift can result in a substantial income tax deduction in the year you make the donation, and it may also reduce capital gains and estate taxes. With a charitable remainder trust, you generally receive an up-front income tax deduction equal to the estimated present value of the interest that will eventually go to charity. Charitable contribution deductions are generally limited to 50% of your adjusted gross income (AGI), or 30% or 20% of AGI depending on the type of charity and the property donated. Disallowed amounts can generally be carried over and deducted in the following five years, subject to the percentage limits in those years. Your overall itemized deductions may also be limited based on the amount of your AGI. The charity must be a qualified public charity in order for you to enjoy these tax benefits. Not all tax-exempt charities are qualified charities for tax purposes. To verify a charity’s status, check IRS Publication 78, or visit www.irs.gov. 8 PLANNING YOUR LEGACY
CHARITABLE BEQUEST A charitable bequest is one of the easiest and most flexible ways that you can leave a gift to Humane Society of Tampa Bay that will make a lasting impact.
PROPERTY
HSTB
DONOR’S FAMILY
BENEFITS OF A BEQUEST • Receive an estate tax charitable deduction. • Reduce the burden of taxes on your family. • Leave a lasting legacy to charity. HOW A BEQUEST WORKS A bequest is one of the easiest gifts to make. With the help of an attorney, you can include language in your will or trust specifying a gift to be made to family, friends or Humane Society of Tampa Bay as part of your estate plan, or you can make a bequest using a beneficiary designation form.
HERE ARE SOME OF THE WAYS TO LEAVE A BEQUEST TO HUMANE SOCIETY OF TAMPA BAY • Include a bequest to Humane Society of Tampa Bay in your will or revocable trust. • Designate Humane Society of Tampa Bay as a full, partial or contingent beneficiary of your retirement account (IRA, 401(k), 403(b) or pension).
• Name Humane Society of Tampa Bay as a beneficiary of your life insurance policy. A BEQUEST MAY BE MADE IN SEVERAL WAYS • Percentage bequest - make a gift of a percentage of your estate. • Specific bequest - make a gift of a specific dollar amount or a specific asset. • Residual bequest - make a gift from the balance or residue of your estate. H U M A N E S O CIE T Y T AMPA.ORG
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GIFTS OF INSURANCE A gift of your life insurance policy is an excellent way to make a gift to Humane Society of Tampa Bay. If you have a life insurance policy that has outlasted its original purpose, consider making a gift of your insurance policy to Humane Society of Tampa Bay. For example, you may have purchased a policy to provide for minor children and they are now financially independent adults.
We keep policy to maturity.
INSURANCE
HSTB
We cash in the policy for cash value.
BENEFITS OF GIFTS OF LIFE INSURANCE Receive a charitable income tax deduction:
• If Humane Society of Tampa Bay retains the policy to maturity, you can receive additional tax deductions by making annual gifts so that we can pay the premiums.
• If Humane Society of Tampa Bay cashes in the policy, you will be able to see firsthand how your gift supports our charitable work.
• If we retain the policy to maturity, or you name us as a beneficiary, once the policy matures, the proceeds of your policy will be paid to our organization so that we can use the proceeds to further our charitable work.
HOW TO MAKE A GIFT OF LIFE INSURANCE To make a gift of life insurance, please contact your life insurance provider, request a beneficiary designation form from the insurer and include Humane Society of Tampa Bay as the beneficiary of your policy.
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GIFTS OF RETIREMENT ASSETS Donating part or all of your unused retirement assets, such as your IRA, 401(k), 403(b), pension or other taxdeferred plan, is an excellent way to make a gift to Humane Society of Tampa Bay. If you are like most people, you probably will not use all of your retirement assets during your lifetime. You can make a gift of your unused retirement assets to help further our mission.
RETIREMENT ASSETS
HSTB
BENEFITS OF GIFTS OF RETIREMENT ASSETS • Avoid potential estate tax on retirement assets. • Your heirs would avoid income tax on any retirement assets funded on a pre-tax basis. • Receive potential estate tax savings from an estate tax deduction. HOW TO MAKE A GIFT OF RETIREMENT ASSETS To leave your retirement assets to Humane Society of Tampa Bay, you will need to complete a beneficiary designation form provided by your retirement plan custodian. If you designate Humane Society of Tampa Bay as beneficiary, we will benefit from the full value of your gift because your IRA assets will not be taxed at your death. Your estate will benefit from an estate tax charitable deduction for the gift.
MORE ON GIFTS OF RETIREMENT ASSETS Did you know that 60% – 70% of your retirement assets may be taxed if you leave them to your heirs at your death? Another option is to leave your heirs assets that receive a step up in basis, such as real estate and stock, and give the retirement assets to Humane Society of Tampa Bay. As a charity, we are not taxed upon receiving an IRA or other retirement plan assets.
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IRA CHARITABLE ROLLOVER You may be looking for a way to make a big difference to help further our mission. If you are 70½ or older, an IRA charitable rollover is a way you can help continue our work and you can benefit for the tax year.
IRA (CUSTODIAN)
HSTB
BENEFITS OF AN IRA CHARITABLE ROLLOVER • Avoid taxes on transfers of up to $100,000 from your IRA to our organization. • Satisfy your required minimum distribution (RMD) for the year. • Reduce your taxable income, even if you do not itemize deductions. • Make a gift that is not subject to the deduction limits on charitable gifts. • Help further the work and mission of our organization. HOW AN IRA CHARITABLE ROLLOVER GIFT WORKS • Contact your IRA plan administrator to make a gift from your IRA to us. • Your IRA funds will be directly transferred to our organization to help continue our important work. • Please note that IRA charitable rollover gifts do not qualify for a charitable deduction. • Please contact us if you wish for your gift to be used for a specific purpose.
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GIFTS OF STOCKS & BONDS Donating appreciated securities, including stocks or bonds, is an easy and tax-effective way for you to make a gift to Humane Society of Tampa Bay.
STOCKS/BONDS
HSTB
BENEFITS OF GIFTS OF STOCKS AND BONDS • Avoid paying capital gains tax on the sale of appreciated stock. • Receive a charitable income tax deduction. • Further our mission today. HOW TO MAKE A GIFT OF STOCKS AND BONDS By electronic transfer - Please contact us for instructions on how you can transfer stock or bonds from your brokerage or investment account to Humane Society of Tampa Bay. By certified mail - If you hold securities in certificate form, you will need to mail two envelopes separately to complete your gift. In the first envelope, place the unsigned stock certificate(s). In the other envelope, include a signed stock power for each certificate. You may obtain this power from your broker or bank. Please remember to use certified mail.
MORE ON GIFTS OF STOCKS AND BONDS There are special rules for valuing a gift of stock. The value of a charitable gift of stock is determined by taking the mean between the high and low stock price on the date of the gift. Mutual fund shares are valued using the closing price for the fund on the date of the gift.
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GIFTS OF REAL ESTATE Donating appreciated real estate, such as a home, vacation property, undeveloped land, farmland, ranch or commercial property can make a great gift to Humane Society of Tampa Bay.
REAL ESTATE
HSTB
BENEFITS OF GIFTS OF REAL ESTATE • Avoid paying capital gains tax on the sale of the real estate. • Receive a charitable income tax deduction based on the value of the gift. • Leave a lasting legacy to Humane Society of Tampa Bay. HOW TO MAKE A GIFT OF REAL ESTATE Your real property may be given to Humane Society of Tampa Bay by executing or signing a deed transferring ownership. You may deed part or all of your real property to Humane Society of Tampa Bay. Your gift will generally be based on the property's fair market value, which must be established by an independent appraisal.
14 PLANNING PLANNING YOUR YOURLEGACY LEGACY
GIFTS OF CASH A donation of cash is a simple and easy way for you to make a gift.
CASH
HSTB
BENEFITS OF GIFTS OF CASH • You can make an immediate impact on our mission. • You can take a charitable income tax deduction. HOW TO MAKE A GIFT OF CASH Mailing a gift of cash - You can send us a check or money order. Please let us know if you want your gift used for a specific purpose by indicating that purpose either in the memo line of the check or in a letter to us.
MORE ON GIFTS OF CASH Did you know that you can mail a check on December 31st and, even if the check is not received and cashed by Humane Society of Tampa Bay until after the new year, the IRS will allow you to take a deduction in the year the check was mailed? Keep this in mind for year-end tax planning!
HH UU MMAANES N E SOOCCIE IETTYT Y TAAM MPA.ORG PA . OR G
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ESTATE PLANNING INFORMATION Personal Property Distribution You can leave certain assets, such as personal property, to loved ones in your will or trust by including a list of instructions naming the person who should inherit a specific item. Personal property could include jewelry, silver, china, furniture, collectibles and other movable property. Amending a list when it is written in your will or trust can be expensive because it requires you to create an updated estate plan. That is not always practical. For that reason, many states permit you to include a provision in your will or trust that states you will be maintaining a list, separate from your will or trust, leaving specific assets to specific people. If the list is prepared properly, it will operate as part of your estate plan. This list has several advantages. You can easily update the list as you see fit, such as to change beneficiaries or remove references to property you no longer own or add references to property you recently acquired. For example, if you recently inherited a family heirloom, you can make sure that item stays in the family by updating your list to add the heirloom and name a family member as the person who will inherit the item from you. To ensure the list is valid, your state may require certain formalities, such as a requirement that you sign and date the list or that you include specific language that makes clear the list is part of your estate plan. In addition, for tax planning and other legal reasons, certain assets are better left to loved ones in other ways. For these reasons, even though this kind of list can provide you with a great deal of flexibility, you should still confer with your attorney periodically about your list and overall estate plan.
REMEMBER YOUR PETS Your pets are also members of your family. They depend upon you for their lifelong care. You can choose who will take care of your pets.
• You and your attorney may want to create a pet trust. • The pet caretaker may receive trust payouts for food and veterinarian care.
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SPECIAL CONSIDERATIONS WITH RESPECT TO PERSONAL PROPERTY As you think about the gifts you want to make, consider the timing of your gifts, who might be most appreciative of your gifts and how you can be fair in selecting your gift beneficiaries.
Timing
Selection
Fairness
Would you find satisfaction in
Do you share common interests
Are you struggling with a fair
seeing firsthand how much a
with one of your children?
and equitable way to leave gifts
loved one enjoys a gift from
Would a certain gift evoke fond
to family? You may want to use
you? If so, perhaps you would
memories for a loved one? If
a “rotating choice” plan. Using
instead prefer to make certain
so, consider which gifts would
this method, you meet with
gifts during your life.
be most meaningful to each
your loved ones and give each
individual.
person a turn selecting from certain items. At the end of the process, your list would include each person’s selection.
BENEFICIARY DESIGNATION GIFTS A beneficiary designation is a simple and affordable way to make a gift. You can designate a family member or our organization as a beneficiary of a retirement, investment, bank account or your life insurance policy. With a beneficiary designation, you continue to use your account as long as needed, simplify your planning, avoid expensive legal fees and support the causes that you care about. To make your gift, contact the person, custodian or trustee who helps you with your retirement account or insurance policy. He or she will send you a beneficiary designation form. You may complete the form, sign it and mail it back. When you pass away, your account or insurance policy will be paid or transferred to your selected beneficiaries. If you plan to leave a gift to charity in your estate plan, please keep in mind that beneficiary designation gifts are among the most flexible of all charitable gifts. Even after you complete the beneficiary designation form, you can take distributions or withdrawals from your retirement, investment or bank account and continue to freely use your account. You can also change your mind for any reason at a future date. A gift through a beneficiary designation is simple and flexible. H U M A N E S O CIE T Y T A MPA.ORG
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SAMPLE BEQUEST LANGUAGE We have provided some basic bequest language to assist you and your attorney.
BEQUEST OF A SPECIFIC DOLLAR AMOUNT “I hereby give, devise and bequeath [Bequest Amount] to Humane Society of Tampa Bay, a non-profit organization located at 3607 North Armenia Avenue Tampa, FL 33607, Federal Tax ID: 59-0799907, for Humane Society of Tampa Bay’s general use and purposes.”
BEQUEST OF SPECIFIC PERSONAL PROPERTY “I hereby give, devise and bequest [Property Bequest] to Humane Society of Tampa Bay, a non-profit organization located at 3607 North Armenia Avenue Tampa, FL 33607, Federal Tax ID: 59-0799907, for Humane Society of Tampa Bay’s general use and purposes.”
BEQUEST OF SPECIFIC REAL ESTATE “I hereby give, devise and bequest all of the right, title and interest in and to the real estate located at [Bequest Real Estate] to Humane Society of Tampa Bay, a non-profit organization located at 3607 North Armenia Avenue Tampa, FL 33607, Federal Tax ID: 59-0799907, for Humane Society of Tampa Bay’s general use and purposes.”
BEQUEST OF PERCENTAGE OF AN ESTATE “I hereby give, devise and bequest [Bequest Fraction Of Residuary] to Humane Society of Tampa Bay, a non-profit organization located at 3607 North Armenia Avenue Tampa, FL 33607, Federal Tax ID: 59-0799907, for Humane Society of Tampa Bay’s general use and purposes.” For additional examples of bequest language, please visit our website.
LEGACY SOCIETY We welcome friends and family members who commit to our future support through a bequest, beneficiary designation or other planned gift. The Legacy Society includes several benefits.
MEMBERSHIP BENEFITS • Invitations to Special Events • Listing on Website and Publications • Legacy Certificate and Pin 18 PLANNING YOUR LEGACY
Please call or visit our website, we will happily provide more information: HSTBLegacy.org 813.876.4150
Humane Society of Tampa Bay CONFIDENTIAL PLANNED GIVING NOTIFICATION Many donors who plan to support the Humane Society of Tampa Bay through their estate and/or financial plans prefer to keep their intentions private. However, by letting us know of your plans, we can thank you during your lifetime and confirm that we are able to fulfill your stated intentions. Completing this form is non-binding and we understand that you may change your plans any time. All your information that you share with us is kept strictly confidential.
PERSONAL INFORMATION Name(s): Address: City: State: Zip Phone: Email:
YOUR GIFT INTENTION
Please provide the following information and attach a copy of the documentation or appropriate language from your will or trust, if available. Please complete all that apply. I/We want to support the mission of the Humane Society of Tampa Bay through a planned gift as described below: I/We have included a bequest for the Humane Society of Tampa Bay in my/our will or living trust. I/We have the Humane Society of Tampa Bay as a beneficiary of an asset: Retirement Plan Bank, Investment, or Other Financial Account Life Insurance Policy Other I/We have included the Humane Society of Tampa Bay as a revocable/irrevocable (circle one) beneficiary of a charitable remainder trust. The anticipated value of my/our gift is/will be approximately $ or % of my/our estate. (If possible, please include a copy of the bequest language or other wording describing your planned gift.) General description of gift provision (such as, asset to be donated if other than cash or securities):
LEGACY SOCIETY Yes, you may include me/us in listing of the Legacy Society.
Please indicate how you would like your name(s) to appear in Legacy Society listings (your
intended gift will not be published)
No, please do not include me/us in listings of the Legacy Society. Signature(s):
Date:
RETURN FORM TO: Chief Development Officer | Humane Society of Tampa Bay | 3607 N Armenia Ave | Tampa, FL 33607 Or contact her for more information at 813.876.4150 | Development@HumaneSocietyTampa.org H U M A N E S O CIE T Y T A MPA.ORG
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Humane Society of Tampa Bay | 3607 N Armenia Avenue | Tampa, FL 33607 813.876.4150 | Development@HumaneSocietyTampa.org | HSTBLegacy.org