Ask an Attorney

Nicole Marro
St. Ann’s Foundation Board Member
Attorney at Law
Bond, Schoeneck & King PLCC

Q.  I want to leave most of my estate to my children but I also want to make a meaningful contribution to St. Ann’s.  How can I best incorporate the two?

Building charitable giving into your estate plan is a wonderful way to extend your generosity and provide for tomorrow’s seniors.  There are several good ways to provide for your family while also giving to St. Ann’s.

One way is to make an outright gift in your will.  Call your estate attorney and request an update to include a bequest to benefit St. Ann’s seniors.  The amount you give won’t reduce your income taxes, but it could reduce your taxable estate, potentially increasing the amount you’ll be able to leave to your heirs.

Another easy and tax-effective way is to donate retirement assets. You simply designate the charity as the beneficiary on your account (or as the beneficiary of a percentage of your account).  Because the charity is exempt from both income and estate taxes, it can receive 100% of the account’s value.  You can then leave non-retirement assets, which don’t have the same income tax burden, to your children.

You can also give the gift of life insurance by updating the beneficiary designation on a current policy to include St. Ann’s as an additional beneficiary.  Or, you could purchase a new policy solely for St. Ann’s benefit.

Finally, you may want to consider a Charitable Gift Annuity.  If you’re over 65 and underwhelmed with the income you are receiving from a CD or other long term investment, consider a Charitable Gift Annuity.  You’ll enjoy an immediate income tax deduction and possibly higher annual income.

For additional information or to follow up on any of these questions, please contact Carol O’Neal at 585-697-6338 or coneal@stannscommunity.com

This information should not substitute for obtaining legal advice from your attorney.
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Rachel Bandych
St. Ann’s Foundation Board Chair Elect
Former Senior Counsel
Underberg & Kessler LLP

Q: Can I make a gift of my retirement plan assets to St. Ann’s?

A: Yes, you can name St. Ann’s as the beneficiary of the balance of the assets in your retirement plan. This can be a great way to make a charitable gift part of your estate plans. If you think that you won’t need all of your retirement funds during your lifetime you can gift all or part of it and potentially save on estate taxes. This is also a good option because your retirement plan will not  be depleted by up to 65% from taxes when you pass away.

Q: Can you explain the benefits of naming St. Ann’s as the beneficiary of my 401(k) plan?

A: Most retirement accounts are considered income. When you name your heirs as the beneficiary of your retirement plan, they will pay deferred income tax when you pass away.  If you name St. Ann’s as the beneficiary, your estate will take a charitable deduction on the Federal estate tax return based upon the value of the bequest. You can also designate a specific amount or percentage of your retirement plan for St. Ann’s. This type of gift will provide a substantial benefit to St. Ann’s for generations to come.

Q: How can I leave St. Ann’s a gift in my will?

A: When you create your will, you have the ability to decide how your assets will be distributed at your death. Making a bequest to St. Ann’s is as simple as inserting a few sentences into your will.  You can leave a specific amount, a percentage or a share of your residuary estate. A gift through your will positively impacts St. Ann’s well into the future. Take a moment to let the staff in the Foundation know when you have made a gift through your will so that they can say thank you.

To ask a question about your will or other estate plans, please contact Carol O’Neal at (585) 697-6338 or e-mail: coneal@stannscommunity.com

This information should not substitute for obtaining legal advice from your attorney.