Ways to Give

Gibson Area Hospital (GAH) Foundation offers you many tax-deductible methods for making contributions to Gibson Area Hospital & Health Services (GAHHS). You have a choice of making your contribution unrestricted or restricted for a certain purpose. Following are several ways to give:

 

 

Cash Gifts

Cash gifts are the most popular and straight forward type of giving. You have the opportunity to make a contribution in memory of someone who is deceased, in honor of someone, in recognition of a special occasion (birthday, anniversary, new baby) or accomplishment.

 

 

A Current Will

Drafting a will may seem like a headache at first, until you realize all the good that comes from having a will.

 

A bequest in your will lets you pass any amount you wish to us free of estate tax. You can give cash or specific property, a dollar amount or a percentage of your estate, with restrictions or without.

 

To design a will that benefits the people and organizations you care about most, we recommend that you obtain the professional counsel of an attorney who specializes in probate and estate planning.

 

 

A Living Trust

A living trust lets you provide for yourself and your family before and after your death. It has a built-in flexibility that can work very well with your overall estate plans, because it allows you to stay in control of your assets.

 

Like wills, living trusts are fully revocable, so you can change or terminate them at any time during your life. But unlike wills, the terms of a living trust can be put into effect immediately. 

 

You can also arrange a contribution to us through a living trust by naming us as the ultimate beneficiary. This method of giving is attractive because you still have complete control of the assets during your lifetime.

 

 

Life Insurance

When you first bought life insurance policies, you obviously felt a need for them. But perhaps you don’t need all that coverage today. Yet you still have those policies. If you’re thinking about a contribution to us, a gift of your life insurance could be a sensible as well as a generous course of action.

 

You can also use life insurance to replace the value of a different gift. For example, you could donate stock to us because of the tax advantages and purchase life insurance to benefit your heirs in the amount they would have received had you left them the stock.

 

 

Retirement Plan Assets

Did you know that your retirement plan assets are facing double taxation? If you leave the assets to your heirs, you’ll generate “income in respect of a decedent.” So not only is the amount diminished by estate taxes, but the recipient also must pay income taxes on it! 

 

If you can make other provisions for your family, there’s a better option for your retirement plan assets – a charitable gift!

 

 

Real Estate

Are you thinking of selling land or a building? Beware of capital gains tax! A charitable contribution of real estate-whether it’s your personal residence, a vacation home, a farm, commercial real estate, or vacant land-will give you numerous advantages.

 

 

Retained Life Estate

Let’s assume you like the tax advantages that a charitable gift of real estate would offer, but you want to continue living in your personal residence for your lifetime. Did you realize you can give us your home, even though you continue living there? 

 

It’s true. It’s called a retained life estate. 

 

A gift of your home, farm, vacation home, or condominium, even with stipulations about occupancy, results in a charitable deduction on your income tax. 

 

The retained life estate also provides you with a way to let someone other than you or your spouse have life occupancy of your home without the associated estate tax payments.

 

 

Closely Held Stock

If you own a sizable block of stock in a closely held corporation, you may have a gift option that makes everyone happy. 

 

Suppose you decide to donate some shares (few enough that you retain 50% ownership) to us. And then we present the stock to your corporation for redemption. Your corporation uses retained earnings for the purchase. 

 

We win because we receive much-needed funds. But you and your corporation also win. 

 

There’s one caveat: the IRS has ruled that you cannot legally bind a charitable organization to go through with the redemption at the time it receives the shares. 

 

But a charitable organization may independently offer the donated stock for redemption, and there’s little likelihood that we would fail to do this. It’s a favorable option that benefits you and us.

 

 

Charitable Remainder Annuity Trust

If you are uncomfortable letting your future retirement dollars ride the ups and downs of the stock and nod market, try a charitable remainder annuity trust. 

 

This plan will pay you a fixed dollar amount every year for the rest of your life, with no investment worries or responsibilities. Then after your lifetime (and the lifetime of a surviving beneficiary, if desired), the trust remainder is available to support our mission. 

 

The charitable remainder annuity trust is more than an eventual gift to us. It lets you give away the tree and still keep the fruit, because you receive lifetime income from your donation.

 

 

Charitable Remainder Unitrust

A charitable remainder unitrust is like a combination of a gift and an investment plan. You place assets in trust and you receive lifetime income from them, then we receive the remainder. 

 

With a unitrust, the amount you receive as income is a set percentage of the value of the trust assets, redetermined annually. 

 

You also have the option of choosing a unitrust with a net income plus make-up provision. That way, in years when the actual yield is below the stated percentage, you receive only that amount. Then later, when performance is better, those deficiencies are made up. 

 

This option is excellent for devising a supplemental retirement plan – we can provide you with more details.

 

 

Charitable Lead Trust

There’s a way to pass assets to your family with significant estate tax savings while at the same time making a gift to us. It’s called a charitable lead trust. 

 

After we receive income from assets in the trust for a period of years, the principal goes to your family, with estate or gift taxes reduced or even eliminated. 

 

The lead trust is an exceptional way to transfer property to your children or other heirs at minimal tax cost. It’s ideal if you’re willing to forgo investment income on an asset but don’t want to force your heirs to surrender the principal. 

 

With a lead trust, you carry out your philanthropic plans over the coming years and save on taxes.

 

For more information on the different ways to give to GAH Foundation, please contact 217-784-2600.

 

 

This information is not intended as legal advice. For legal advice, please consult an attorney.