Your Legacy A Guide to Including Stone Belt in Your Estate Plan
Dear Friend, We are happy you are thinking about your future and are interested in learning more about ways you can support Stone Belt. This guide is intended to help you begin to think about the different ways you can take action now to help ensure the future success of Stone Belt, even after your death. Preparing a well-considered estate plan will not only help you determine the best way to continue your support for Stone Belt, but can also help avoid problems associated with the absence of an estate plan. There are a number of reasons why you might choose to include Stone Belt in your estate plan 1) You value Stone Belt’s work; 2) You are honoring a loved one who was cared for by or who worked for Stone Belt; 3) You want your money to go to a local organization; 4) You want to take advantage of tax benefits associated with charitable giving; 5) You want to ensure that Stone Belt is able to continue a particular service; 6) You know that Stone Belt is a well-established, well-run organization that will manage your gift wisely; 7) Your heirs are already taken care of and the gift establishes a legacy of generosity and empathy; 8) You want your heirs to know how much you valued Stone Belt; 9) Because it feels good to give. If you are not working with an estate planning attorney already, Stone Belt suggests that you do so. Our representatives are not attorneys, and cannot provide legal advice. We hope this Guide helps provide you with some basic information about various ways in which you can give to Stone Belt in a manner that is compatible with your long-term planning goals. Sincerely, Adam Hamel Development Manager Stone Belt, Arc. 812-332-2168 ext. 269 Ahamel@stonebelt.org
1 | Planning Your Will & Trust
Table of Contents Introduction Planning Your Legacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Estate Planning Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Basic Planning Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Estate Planning Information Personal Property Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Beneficiary Designation Gifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Sample Bequest Language . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
The Jewel Society Stone Belt’s Planned Giving Program Stone Belt’s Jewel Society is an honorary society that recognizes those who have named Stone Belt as a beneficiary in their estate plans. The Jewel Society provides visionary donors with the opportunity to create a lasting legacy in support of individuals with disabilities. Jewel Society members are listed in Stone Belt publications, according to the wishes of the donor. You can join the Jewel Society through several planned giving options, including bequests, certificates of deposit, charitable gift annuities, private retirement plans, gifts of insurance, charitable lead trusts, and charitable remainder trusts. Stone Belt encourages donors to speak with a professional estate advisor when making decisions about planned gifts. For more information about the Jewel Society, email Adam Hamel, Stone Belt Development Manager, at Ahamel@stonebelt.org, or call 812-332-2168, ext. 269. If you have already included Stone Belt in your plans, please let us know so we can thank you! Full name of organization: Stone Belt Arc, Inc. Tax ID Number: 35-1059827
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Introduction Planning Your Legacy Welcome to A Guide to Including Stone Belt inYour estate plan. We are very pleased that you are considering including Stone Belt as a part of your legacy. A plan is important, but an estimated 70% of Americans don’t even have a will. This guide will help you by making the process easier and more understandable. Through proper planning, the legacy of love and care that you leave for your family, friends, and charitable organizations can be encouraging and even inspiring. 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 desire to leave a legacy of generosity and charitable giving. What are the benefits to an estate plan? Peace An estate plan should give you and your family peace of mind, knowing that important and sometimes difficult decisions have been made to care for you and your loved ones.
A good plan provides for your future medical decisions and protects your family. It may be important to designate a specific person to manage your property, help doctors and other medical staff with important decisions, and make certain that you are receiving the best possible care.
A well-designed estate plan can give loved ones the property you have acquired in the right way, at the right time, and at minimal cost.
What if I have questions about some of the information? When it comes time to decide on the distribution of your property, you may have some questions that you can review in advance of meeting with your estate planning attorney. We want you to have the best possible tools for making those decisions. Both the American Bar Association, https://www.americanbar.org/groups/real_property_trust_estate/resources/ estate_planning/, and Indiana Legal Services, https://www.indianalegalservices.org/topics/90/wills-estates, provide comprehensive guides on wills and trusts. What good things happen with an updated will? With an updated will, you can transfer specific property or assets. In addition, you will be able to direct the residue of your estate. For those with larger estates, there could be substantial estate tax savings. In addition, you know that the executor or personal representative you select (not the one a probate judge chooses) will be managing your property. A good will is able to carry out your plan and save thousands of dollars while transferring property quickly and inexpensively. Can I use my estate plan to create a legacy? Everyone wants to have a life with meaning. Part of that meaningful life is to live on in the memory of family and friends. A good estate plan can create a legacy for family and Charity such as Stone Belt that gives added meaing to your life. 3 | Planning Your Will & Trust
Estate Planning Documents There are four basic steps in the estate planning process. 1. Write Down What You Own It is important to understand what property you own and what property will be transferred through your estate. You can use this planning guide so that when you speak to your attorney you have all of the information you may need to have a conversation about planning your legacy. 2. 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. 3. Know How Property is Transferred Some property is transferred by will and some is transferred by a beneficiary designation or other form. You need to know how your property will be transferred. With a good plan, your property may be transferred as you desire and you can be confident that your plan reflects your priorities. 4. Sign Your Will and Medical Directives Your plan is not effective until you have signed your documents and they have been properly notarized and/or witnessed pursuant to applicable law. It is important to sign the documents that correctly express your will and desires, both for your property and for your potential future personal use.
Basic Planning Documents Let’s start by reviewing basic estate planning documents you can create with your estate attorney - a will, a durable power of attorney for finances, a durable power of attorney for healthcare, living trusts, custom estate plan for business, investments, or child with special needs, IRA, 401(k) or other retirement plan, life insurance, charitable gift annuity, donor advised funds, and charitable endowments. If you include Stone Belt in your will or trust please let us know so we can plan to best utilize your gift. Current Will Your will is a written document, signed by you and by two or more witnesses. If the will is authenticated by the probate court, it will be used to determine the distribution of your property. If the will is not valid or you do not have a will, the court will follow state law to distribute your assets and appoint guardians for minor children. In the absence of a clear estate plan, the Court’s decision may be contrary to your desires.. With a valid will, you are able to choose who will inherit your property and who will administer your estate as executor or personal representative. If you have minor children, you can choose a person to raise your children. With a trust, you are permitted to decide who will manage the trust for family members and allow your money to be distributed over time for purposes which you designate. A valid will is an essential part of transferring your property at the right time to the right people at the lowest cost. Without a valid will, your family may encounter increased costs, delays and unnecessary conflicts. You can provide a wonderful legacy by designating Stone Belt as a recipient with an updated will and a sound estate plan. Planning Your Will & Trust | 4
Living Trusts A living trust is completely within your control during your lifetime. You can add property to the trust or remove property from the trust at any time. During your lifetime, the trust income is taxable to you. There are at least three major benefits of a living trust. First, if you are sick or in the hospital, your designated successor trustee can take over and manage your property for your benefit. Second, if you pass away, the property in the living trust will avoid probate and potentially save thousands of dollars in costs. Third, the living trust typically is a private document and is not made public during the probate process.
Custom Estate Plan for Business, Investments, or Child with Special Needs If you own a family business, substantial real estate holdings or a large estate, then a custom plan that considers your special property goals and requirements should be created. Another custom plan option is important if you have a child with special needs. A child with special needs may be provided for through a “special needs trust”. A special needs trust will facilitate care of the child by providing resources and directions without risking their eligibility for means-tested benefits. In some cases, a child may qualify to receive federal or state benefits that can be helpful in providing care for the special needs child. One resource you could consider for this is the Arc of Indiana.
IRA, 401(k) or Other Retirement Plan Your IRA, 401(k), or other retirement plan is transferred by a beneficiary designation. Normally, the beneficiaries should be named on the IRA, and it should be given directly to family or charity, and not to your estate. The IRA or 401(k) custodian should provide a form for you to select a primary and contingent beneficiary. Because your retirement plan may represent a major portion of your property, your beneficiary designation should be reviewed every two to four years.
Charitable Endowments Another option that you may prefer is to leave property or money in an endowment form so that the charity does not spend the principal. Instead, the charity is paid the endowment income. Endowments may be left to community foundations or often directly to the charity with instructions for their use. It is often helpful to suggest a general purpose for the endowment fund because it will last perpetually, and the original purpose for the gift may one day not exist. If you are interested in an endowment approach to your charitable gifts, please contact us. Stone Belt Excellence Endowment Gifts to the Stone Belt Excellence Endowment support ongoing initiatives that enable the agency to reach levels of excellence in supports, training, and outcomes for both clients and staff. Examples of programs funded through the Excellence Endowment include supporting innovative programs such as Stone Belt Art Studios, Hand-in-Hand, and the I Am You performances. Enhanced staff development programs, beyond basic requirements, help staff obtain cutting edge information and best practices for supporting quality outcomes for those we support. The Joan Burton Memorial Fund at the Community Foundation of Bloomington and Monroe County Joan Burton served as the first executive director of Stone Belt Arc from 1965-1985. Mrs. Burton’s impact on the agency and community was truly significant, and her advocacy work on behalf of individuals with developmental disabilities was inspirational. Gifts to the Joan Burton Fund are made directly to the Community Foundation of Bloomington and Monroe County, with the income of the fund directed to Stone Belt. 5 | Planning Your Will & Trust
Charitable Gift Annuity Many of our friends, especially those age 70 and above, are very interested in fixed payments from a charitable gift annuity. If you fund a gift annuity, you recieve a substantial income tax charitable deduction and fixed payments for life. A gift annuity may pay for one life or two lives. For a married couple, the payments will last until both have passed away. This can be created through your local Community Foundation. Donor Advised Funds Many families find that a donor advised fund (DAF) is a simple and efficient way to help charities that they love. By establishing such a fund, you can time the gifts you make (for investment or tax reasons) and you can select the charities you wish to benefit from your gifts. You receive the income or estate tax deduction, and the opportunity is there to make distribution decisions later. Many families may use a Donor Advised Fund as an estate beneficiary so that they can allow their children or friends to continue supervising the gifts from their fund for years to come. Life Insurance Life insurance is usually permanent (whole life or universal life) or term. The insurance policy is a contract, and there is a beneficiary designation form. You will select the primary and contingent beneficiary to receive the death benefit if you pass away with a valid insurance policy.
Estate Planning Information Personal Property Distribution List to Dispose of Personal Property Your will or trust is designed to transfer property to the person you select. However, many states permit you to update and maintain a list of personal items that may be changed whenever you desire. The lists must be signed and dated, and describe the personal property and name the recipient. Under tha laws of most states, you are permitted to make a list of property that may include jewelry, silver, china, furniture, and collections of stamps, coins, art, and other personal items that are movable. The advantage of this list is that you may update it as you buy or sell these items or you may change your mind about who should receive china, silver, rings, or other personal items. By making and updating this list, you can change the recipients as your property changes. It is important to be certain that you have signed and dated each list. Only the last list you have completed before your demise will be valid. If some items on this list are very valuable (especially art and other collections), then it is important to discuss the transfer of these items with your professional advisor. Your advisor may use language similar to the language below in your will: EXAMPLE LANGUAGE “Under the laws of the State of _____________ I may leave a written statement or a list, dated and signed by me, disposing of certain items of my tangible personal property. Any such list with date and signature shall be effective to transfer the named personal property. If no signed and dated list is identified by my personal representative within thirty days after his or her qualification, it shall be presumed that there is no statement or list and any subsequently discovered statement or list shall be ignored.” Planning Your Will & Trust | 6
Beneficiary Designation Gifts A beneficiary designation is a simple and affordable way to make a gift to Stone Belt. You can designate a family member or our organization as a beneficiary of a retirement, investment or 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. She or he will send you a beneficiary designation form. You may complete this 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 Stone Belt 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.
Sample Bequest Language 1. Bequest of a Specific Dollar Amount “I hereby give, devise, and bequeath [$Dollars] to Stone Belt Arc, Inc.., a non-profit organization located at 2815 E. 10th St. Bloomington, Indiana 47408, Federal Tax ID: 35-1059827, for Stone Belt Arc, Inc.’s general use and purposes” 2. Bequest of a Specific Personal Property “I hereby give, devise, and bequeath [Description of Property] to Stone Belt Arc, Inc., a non-profit organization located at 2815 E. 10th St. Bloomington, Indiana 47408, Federal Tax ID: 35-1059827, for Stone Belt Arc, Inc.’s general use and purposes” 3. Bequest of a Specific Real Estate “I hereby give, devise, and bequeath all of the rights, title, and interest in and to the real estate located at [Address or Description of Property] to Stone Belt Arc, Inc., a non-profit organization located at 2815 E. 10th St. Bloomington, Indiana 47408, Federal Tax ID: 35-1059827, for Stone Belt Arc, Inc.’s general use and purposes” 4. Bequest of Percentage of Estate “I hereby give, devise, and bequeath [Percentage of Your Estate] to Stone Belt Arc, Inc., a non-profit organization located at 2815 E. 10th St. Bloomington, Indiana 47408, Federal Tax ID: 35-1059827, for Stone Belt Arc, Inc.’s general use and purposes” Before you meet with your estate planning attorney or determine your estate planning strategy, you should gather detailed information about the assets (real estate, bank accounts, insurance policies, stocks, bonds, vehicles, personal property, etc.) and debts (mortgages, credit card, outstanding loans, etc.) in your name. You should have a firm grip on the present value of each asset, whether there are other owners of the asset, and whether beneficiaries have been designated for that asset. These details will be an important part of determining your estate planning strategy. Important Disclosure Thank you for reviewing this guide and considering Stone Belt in your estate plans. We offer this as an educational service. While we attempt to provide helpful estate and financial background, we are not able to offer specific legal advice on your personal information. Because you may have specific needs, you will want to contact your attorney. They will be your independent advisor. With the advice of your independent attorney, you may have a customized estate plan that truly fulfills your unique family, healthcare, estate, and planning goals. Planning Your Will & Trust | 7
Thank you for considering Stone Belt during your planned giving process
Adam Hamel Development Manager 2815 E. 10th Street Bloomington, IN 47408 p: 812-332-2168 e: firstname.lastname@example.org w: stonebelt.org