Ways to Give
Gifts Through Your Will Or Living Trust
Many friends of The ALS Association make a gift of lasting significance through their will or living trust
A gift to The ALS Association through your will or living trust has several advantages:
- Charitable gifts made through your will or living trust are 100 percent deductible for estate tax purposes
- A charitable bequest may place your estate in a lower estate tax bracket
- Once you inform The Association of your bequest intention, you will be welcomed and acknowledged as a member The Lou Gehrig Legacy Society.
Consider discussing with your legal counsel the following types of bequests:
- Giving a specific dollar amount
- Giving a percentage of your estate or the residue after providing for family members
- Giving a specific parcel of real estate
- Giving personal property
A sample provision might read as follows
| "I bequeath (here state the specific dollar amount, percentage, residue, or description of real or personal property) to The ALS Association Greater New York Chapter to be used or disposed of as The Association in its sole discretion deems appropriate." |
Your gift may be designated for one or more of ALSA's programs: advocacy, patient services, education and awareness or research. However, a gift not designated for a specific ALSA program allows The ALS Association maximum flexibility in meeting the changing needs of the ALS community.
All gifts made through your will, trust or other type of estate plan can be a meaningful way to celebrate the life of a loved one.
Be sure family and loved ones are adequately cared for first. You and your legal counsel may wish to consider a charitable living trust designed to receive assets and provide income for surviving family members before providing for The ALS Association.
Your Legacy of Hope . . .
IRA Gifts under the Pension Protection Act of 2006
On August 17, 2006, President Bush signed the Pension Protection Act of 2006 into law. Among other things, this new law includes a provision that will permit, for the first time, tax-free charitable transfers from Individual Retirement Accounts (IRAs).
If you have an IRA, you may want to consider using your IRA to make gifts to The ALS Association. Here is what you need to know about this new legislation:
How it Works
IRA owners now can make "qualified charitable distributions" up to $100,000 per year from their IRAs. The distributions to charity, which would otherwise be taxable, are excluded from gross income under this new law.
The exclusion applies to traditional and Roth IRAs only. Other retirement plans such as 401(k), 403(b), SEPs, and SIMPLE plans are not eligible.
Donors must have reached age 70 & 1/2 by the date of contribution to qualify for this exclusion.
The exclusion is in effect for 2006 and 2007 only. The provision is scheduled to expire after 2007. IRA owners can give up to $100,000 each year in 2006 and 2007.
The charitable gift must be made directly from the IRA trustee/administrator to the charity. If you accept a distribution and forward the funds to charity, the distribution will not qualify for the exclusion and will be considered taxable income.
The exclusion applies only to outright gifts from IRAs. Charitable gift annuities, charitable remainder trusts, and other similar gift arrangements do not qualify.
Charitable gifts from IRAs will not be eligible for a charitable income tax deduction.
Giving Opportunities to Consider
Those who would benefit most from the new IRA gift rules are: taxpayers who do not itemize tax deductions; donors whose charitable deductions have been maximized; and donors in states that don't allow charitable deductions.
There are numerous other considerations to be weighed under this new law, including if you have multiple IRAs, if you have nondeductible contributions, and the impact of state income taxes. Please consult with your tax or financial advisor regarding your situation before making any gift.
For more information, please contact Beth Mohsinger at 800.672.8857, or via e-mail at development@als-ny.org.
Charitable Remainder Trusts
There are some unusually favorable tax benefits to be derived from using a charitable trust to provide a future gift for ALSA while retaining a life time income. A great many people have experienced unusual growth in the value of their real estate or stock yet feel too locked in to sell and reinvest for greater income. The charitable trust may be the answer. Highly appreciated assets transferred into a charitable trust may be subsequently sold by the trustee without the imposition of a tax on the capital gain. Most of the original value is preserved by using this unique approach. There are income tax as well as estate tax benefits.
You may designate The ALS Association Greater New York Chapter a beneficiary of a life insurance policy you already own or take out a new policy if state law allows you to do so. Consider donating an older policy you no longer need.
Retirement Plans
Assets in IRAs and other retirement accounts offer substantial tax benefits when considering gifts to charity. These assets are often referred to as "charity friendly" because when received by a charity they are normally not subject to taxation. When family members receive them, they are fully taxable.
Personal Property
Gifts of appreciated personal property, or appreciated securities such as stocks and bonds, can bring significant benefit to The ALS Association while providing a number of tax and financial benefits for you.
Gifts of Real Estate
Occasionally a person has real estate that they would like to donate. Outright gifts of saleable real property could bring substantial benefits to ALSA, both now and in the future. In addition to immediate gifts of real estate, another popular method is to deed a personal residence or farm to a charity, reserving the right to live in or use the property during your lifetime. There are immediate tax benefits to be derived by you when making this type of gift.
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