Planned gifts are generally current or future contributions made under the guidance of your tax or legal counsel. Planned gifts usually involve the desire to support the Highline Medical Center Foundation and to reap income tax benefits, reduce estate tax liability, avoid capital gains tax or turn non-income/low income property into a stream of current income.

What assets make good planned gifts?

• Highly appreciated property with a low cost basis such as stock, mutual funds and real estate. Possible benefits: An income tax deduction for the full current market value, avoidance of capital gains tax and reduction of the taxable value of your estate.
• Assets that are not producing income such as unimproved land or non-dividend producing stock. These may be gifted to the Foundation, sold without incurring capital gains tax and placed into a charitable gift annuity or charitable trust that will produce a new stream of revenue for you. In addition, you may receive an immediate income tax deduction for a portion of the value.
• Assets that are producing income, but for which you no longer want management responsibility, such as rental property. Like the example above, the property may be gifted to the Foundation, sold without incurring capital gains and placed in a charitable gift annuity or charitable trust which continues to provide a stream of income. The gift may also result in an immediate income tax deduction.
• Assets that will be highly taxed if inherited by your heirs such as IRAs and Qualified Retirement Plans. If bequeathed to an heir, an IRA or retirement plan assets are subject to estate tax and income tax. Depending on the size of your estate, up to 75% of the asset could be lost to taxes, resulting in a net inheritance of 25%. By gifting an IRA or retirement plan assets to the Foundation, 100% of the plan's assets will be utilized for the good of the community at a minimal "loss" to your heirs.

What is involved in making a planned gift?
It may be as simple as including the Foundation in your will, adding a codicil to your existing will or changing the beneficiary designation on a life insurance policy or IRA/Retirement Plan. Charitable trusts and annuities, of course, require more time, expense and professional skill. However, whether simple or not, all planned gifts should be made under the guidance of good counsel who will help you to achieve your charitable goals and avoid any unexpected or undesirable tax consequences.

Are you interested in estate planning?
Click here for more information on estate planning seminars at Highline Medical Center and for information available online to help you create your own estate plans.

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